Correcting AR Invoice with Wrong Customer

Find the Invoice - Identify the Invoice with the incorrect customer

Determine where Items are: Determine where the items shipped are actually located.  The location of the items will determine how the situation needs to be corrected.

•      If the items are at the correct location (shipto on invoice was correct, billto address on invoice was incorrect), you can normally credit and rebill the items to the correct billto account.

•      It the items are at an incorrect location, (shipto or both billto and shipto on invoice were wrong), a Return Authorization is usually created to track the shipment of the items back to your facility.

Create Credit Memo for the incorrect customer

•      Credit or Cancel Invoice - If the items were refused or returned by the wrong customer (and a return has not already been processed for the items), the Credit Invoice or Cancel Invoice option can be used to create a credit for the incorrect customer and return the items to stock.  The Cancel Invoice option can only be used if there has been no payment or adjustment activity against the invoice.  The Credit Invoice option can be used even if a payment was applied to the incorrect invoice.  The Credit and Cancel Invoice options work well when the items are actually delivered to the correct address, and just the billto information on the invoice was incorrect.  If the items are not actually being returned, the credit invoice and direct invoice options can be

•      Create RA - The RA or Return Authorization system can also be used to return the items invoiced to the wrong customer to stock and credit the customer for the items being returned.  The Create RA option is most usefull when the goods are still at the incorrect customers location and you and the customer want to have a record of the fact that they are returning the items.  An RA is issued to the incorrect customer, and the RA is used to create a credit when the returned items are received at your location.  A new order is normally used to deliver the product to the correct customer.

Create Invoice for Correct Customer  - Once the incorrect invoice has been backed out, you can issue a new invoice to the correct customer.  You may process the new invoice by processing a sales order, or by creating a direct invoice.

•      Enter Sales Order – A new sales order can be entered to ship the items to the correct customer.  A new invoice will be created for the correct customer when the order is invoiced.  When this option is used, shipping documents are automatically generated by the Order Invoicing process. 

•      Create Direct Invoice – A Direct Invoice can be created for the correct customer in order to bill them for the items.  When the direct invoicing option is used, the system does not automaticallly manifest the items being sent out.

Note – If the items were actually shipped to the correct customer (i.e. shipto was correct, billto was not), the items may not be returned to you, or shipped by you back to the correct customer but the procedure is the same – you need to credit the wrong billto company, and re-invoice the correct billto company.

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