Credit Notes to Suppliers - Reversing a Receipt

For a general overview of the process for accepting a credit note from a supplier, see Credit Note from Supplier.

You will enter the reversal of a receiving document as a line with a negative quantity. In this case, the program will treat the line as a reversal. For this purpose, find a lone with the same price on the date or before the negative receipt to calculate the correct value of stock.

If you reverse multiple lines of a receiving document with different prices, you must create the same number of lines in the reversal. We recommend you use the Adding a Movement - Reversing a Document function.

If a reversed receipt has ALREADY been issued using the LIFO method, the value of the issue WILL NOT be changed. This means that the incorrect value of the stock might be displayed. The incorect value of the stock will appear if, for example, the receiving document you would like to reverse has been used up.  If you would also like to change the value of the issue, the reversal of the receiving document must occur chronologically BEFORE the issue of the same goods.

Example 1: A reversed receipt that (by LIFO method) has yet to be issued

You're reversing 10 items from the first receipt, which will NOT AFFECT the value of issues. Simply put, you're reversing a receipt which by the LIFO method has yet to be issued. In our case, the receipt from 6.3.2001. The sale of the remaining quantity will be correctly valued in this case, and there will be NO remaining value of the stock.

Warehouse Card:

Primer 2: Reversing a receipt that (by LIFO method) has already been completely issued and leads to a remainder in the value of stock

You're reversing 10 pieces of another receipt, which WILL AFFECT the value of issues. Simply put, you're reversing a receipt that has already been issued by the LIFO method. In this case, the receipt from 7.3.2007.

The sale of the remaining quantity will lead to a remainder of the value of the stock even after the entire quantity has been used up.

In cases where goods have been entirely issued by a chosen valuation method (in this case, LIFO), the reversal of the receipt must be dated BEFORE the issue!

In this example, it will suffice to date the receipt on 8.3.2007 and once again refresh stock.

General Functions:

• Stock

Related Topics:

• Warehouse - Valuation by LIFO Method
• Receiving
• Issue
• Refreshing Stock
• Credit Notes to Customers - Reversing an Issue