Overriding invoice tolerances without paying the variance amount

When you run the update and reconciliation process for vendor trade invoices, the cost on the vendor invoice is compared to the cost on the original purchase order. Any discrepancy must be within the tolerances that are defined for the vendor or company. If the discrepancies are outside the accepted tolerances, research the problem and manually fix it. When you fix the discrepancy, you can choose to affect the Inventory Control product cost, not to affect the Inventory Control product cost, or refuse to pay the vendor the variance amount.

Use these instructions to override tolerances and not pay the vendor the variance amount. You can also perform this task when you run the Vendor Entry Group Update/Reconcile Invoices Report.

Select Vendor > Entry > Invoice Center.
Clear the invoice through matching to place the purchase order in the correct stage
Select the invoice you want to clear.
Select More . . . > Finale Update.
Specify the invoice date.
Select all override options in the Reconciliation Process Options section.

Note: You must have correct security in SA Operator Setup to complete this step.
Select Receive Cost in the Cost field.
You do not want to update inventory cost since you are not paying the vendor the inflated invoice amount.
Verify the variance account.
Click Save to override tolerances and perform reconciliation without updating Inventory Control costs for the product.
Enter the credit memo for the amount of the variance.
For example, if the original purchase order indicates that you owe $300 and the vendor invoice says you owe $350, you would enter a credit memo for $50. Additionally, specify the G/L Variance Account on the GL Distribution view when entering the credit memo.
Select More . . . > Final Update.
Specify an invoice date and click Update.
Click OK to process the credit memo and complete the transaction.