PO Correction Workaround

Hi,

I would first create a material transaction with a negative quantity depending on the stage of the production order. This transaction would put back into inventory the goods.

Then, I would create an inventory adjustment without quantity and put the difference between the amount that should have been put into inventory and the amount that had as the extended cost. That being, the inventory value will be adjusted. The reason code used for the adjustment must be tied to the same account as where you allocate the difference between PO receipt and AP Bill value*.

Finally, I would create the material transactions as usual.

*Depending on the option for the PPV variance selected at the Purchase Order Preferences screen, the difference can be either allocated into the inventory account and it will then create the same inventory adjustment without quantity as what I propose. If this is the case, you do not have to do the inventory adjustment because the system will do it once you enter the AP Bill. The other option for purchase price variance allocation, is a PPV account. Then, you have to do the inventory adjustment manually and the reason code used needs to be the same PPV account as the one the AP Bill is using.