Managing an incorrect Payable Invoice amount

How to manage an invoice for an Account Payable where the amount is incorrect.

If your Supplier has overcharged or charged you incorrectly, there are a couple of options to manage such amounts. You can enter a credit transaction, which allows the original invoice and the credit to be allocated against each other, or you can mark the invoice or part of the invoice amount as In Dispute, where it will show on the transaction list as in dispute, but remains outstanding and unallocated.

• From the Payables > Supplier Accounts menu, select the Payable Account you want.
• Click the Transactions tab and select the transaction you want to edit.

This takes you to the View account transaction window where you can add a credit or a disputed amount.

1. Create an Adjustment Transaction

In the Create adjustment transaction section of the screen, enter the details for a reversal amount for the invoice or part of the invoice that you disagree with, and click Create Adjustment.

In this example, we have an invoice for $402.50, and we want to create an adjustment for the full amount, so the amount entered is $402.50. 

This amount will be allocated against the invoice of the same amount, and appears in the transaction list. (Click All to show allocated as well as unallocated amounts.)

2. Mark an invoice as in dispute

Alternatively, in the Amend disputed details section of the screen, you can enter the amount that is in dispute. Enter the amount as a negative value, e.g. in our example we are disputing an invoice for $149.50, so we have entered -149.50. You can also enter a note about the disputed amount.

This will then show on the transaction list for the Supplier as disputed. However, the invoice will still show as an amount due.