We’re struggling to figure out how to handle margin calculations on invoices that have been corrected. Our goal is to first tie our commissions reports to our financials, and then calculate commissions. If we never correct an invoice, this works fine.
Corrected Invoices, though, have three different transactions:
- The original sales invoice, which does have (on the ARTran record) revenue and cost. Once corrected, this invoice gets marked as cancelled.
- The credit memo that wipes out the original sales invoice. This has negative revenue, but no cost (because the inventory was relieved as part of the original invoice, and since it wasn’t returned, the CM has no inventory transaction).
- The new sales invoice, which also includes (on the ARTran record) revenue and cost. The cost, though, is the inventory transaction from the original invoice, not a separate cost transaction.
Our current commissions reports, which we don’t tie to the financials, exclude invoices that have a status of Cancelled, as well as the CM that was used to cancel them. This works great for getting a real net revenue and margin value.
The issue now is that, if we exclude those same transactions, and the correction tasks cross financial periods (which they often do), we need to include all three transactions to get revenue correct (original revenue in the original period, and the discrepancy in the following period), but this doubles up our cost total.
I’m trying some ideas, like ignoring cost values if the invoice is the new invoice, but this introduces it’s own problems. Before I dig too deep I wanted to check if anyone else has a good way of dealing with this.
