Credit or Correct an Invoice for Service Order

This document explains how you credit an original invoice for a service order or correct the invoice.

This can be done if the original invoice contained incorrect prices, quantities, discounts, or calculated VAT. Another example is when the quality of the service was insufficient and a price adjustment is therefore necessary.

Note: You can only process existing invoice lines, you cannot add new ones.

Outcome

You have done the following:

An accounting specification and an invoice journal are printed.

Uses

Send the credit note or corrective invoice to the customer or payer.

If the correction referred to an adjustment of quantity for an item, you need to report this and update the stock balance by creating a requisition order in ‘Req/Distr Order. Open’ (MMS100). Since accounting rule SO10/903 (Fictive inventory – non inventory) is used instead of SO10/910 (Inventory) (see below) when crediting or adjusting quantities, it is also important to create a requisition order in order to adjust the amount recorded by SO10/903.

How the System Is Affected

Before you start

Follow These Steps

Initiate Original Invoice Correction

  1. Start ‘SO Invoice. Display’ (SOS350).

  2. Select an sorting order and enter a facility and year.

  3. Identify the original invoice and select the option Correct/Credit for the invoice to start ‘Service Order Invoice. Correct or Credit’ (SOS380).

    If the original invoice is already corrected by a corrective invoice that now must be corrected in turn, you still enter the original invoice number. M3 automatically recognizes that a previous invoice exists and displays the corrected lines of the previous corrective invoice together with the uncorrected lines of the original invoice in (OIS380).

    It is not possible to credit or correct an original invoice line that has already been credited with corrective method 3 (Credit).

  4. Review the dates for invoice and accounting and change them, if necessary.

    The current date is proposed by default. The invoice and accounting dates for the original invoice are also displayed for informational purposes.

  5. Enter the VAT rate date.

    The VAT rate date determines which date to use when you select a VAT rate for the new invoice lines (the original VAT rate will always be used for the reversed invoice lines).

  6. Select one of the following alternatives:

    • Create a Credit Note
    • Create Corrective Invoice

Create a Credit Note

  1. Select corrective method 3 (Credit).

  2. Enter a service order number and/or delivery number to filter the displayed lines, if applicable.

  3. Select one of the following alternatives:

    • If you want all displayed invoice lines to be reversed in full, select the Select all check box. Press Submit to create the credit note. Press F3.
    • If you only want to credit specific invoice lines, select the option Select for all the lines you want to reverse in full. After doing that, press Submit to create the credit note. Press F3.

Create Corrective Invoice

  1. Select corrective method 1 (Corrective).

  2. Enter a service order number and/or delivery number to filter the displayed lines, if applicable.

  3. Select the Subtotal check box if you want to print subtotals on the corrective invoice.

  4. Select the Negative sign check box if you want to print negative amounts and quantities with a negative sign on the corrective invoice.

  5. Select the Select all check box if you want to include all displayed invoice lines in the correction.

    Note that this check box must be selected if you want to adjust a charge, since the charge might need to be calculated based on the values of all invoice lines.

  6. Select one of the following alternatives:

    • Adjust Quantity, Price and/or Discount for an Invoice Line
    • Adjust Assignment or Line Charges
    • Adjust Service Charge

Adjust Quantity, Price and/or Discount for an Invoice Line

  1. Select the option Correct transaction for an invoice line that needs to be adjusted.

  2. On the E panel, where the original invoice line is displayed together with what will be the new invoice line, review the displayed information.

  3. Make necessary adjustment on the replacement invoice line.

    When changing the quantity, price and/or discount, the new line amount will be recalculated automatically.

    If you change the price, the price origin will be set to 8 (Manually entered or copied price) on the service order line. If you change the discount, the discount origin will be set to 8 (Manually entered discount 1, discount 2 or discount per unit during order line entry) on the service order line.

  4. Enter a VAT code if you want a different VAT code to be used for the calculation of the new replacement line. Select Approve.

    The original VAT rate will always be used for the reversed invoice lines.

    The VAT code entered here will update the VAT code on the service order line.

  5. Make further adjustments, or press Submit and then F3.

Adjust Assignment or Line Charges

  1. Select the option Correct transaction for the charge that needs to be adjusted.

  2. On the E panel, where the original charge is displayed together with what will be the new charge, review the displayed information.

  3. Make the necessary adjustment on the replacement invoice charge.

  4. Enter a VAT code if you want to use a different VAT code for the calculation of the new replacement line. Select Approve.

  5. Make further adjustments, or press Submit and then F3.

Adjust Service Charge

  1. Select the option Correct transaction for the service charge that needs to be adjusted.

  2. If the service charge should be removed, set the amount to 0. Select Approve.

  3. Make further adjustments, or press Submit and then F3.

Parameters to Set

Program ID/Panel Field The field indicates …
(SOS380/B) Corrective method

... how to create a corrective invoice.

Alternatives

1= A corrective invoice is created for one, several or all invoice lines in the original invoice. The corrective invoice displays the reversed invoice lines and the new replacement invoice lines. A reference to the original invoice is printed on the invoice.

3=A credit note is created, reversing in full the selected invoice lines in the original invoice. A reference to the original invoice is printed on the invoice.

(SOS380/B) Negative sign

... whether a negative sign (or actually a reversed sign) should be printed for the quantities and amount on the reversed lines on the corrective invoice.

This check box is only applicable if you selected corrective method 1.

(SOS380/B) Subtotal

… whether subtotals are printed on the corrective invoice. A subtotal is the difference between the original line and the new replacement line.

This check box is only applicable if you selected corrective method 1.

(SOS380/B) Select all

… whether all lines belonging to the invoice or matching the specified service order number and/or delivery number should be submitted for correction or credit.

You select this check box when the adjustments affect all invoice lines. This can be the case if the original invoice or service order referred to the wrong payer or VAT registration number or if you need to adjust a charge.

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