Creating Credit and Correction Invoices—Exercises

IMPORTANT
If you are a student, it is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Basic Data Setup

Purpose: The purpose of this exercise is to create stored sales parts and receive them into inventory in order to use them as complementary parts. 

Enter Customer

Windows:
Customer

  1. Enter C.S.C. New York as customer with XX1000 as Customer No.
  2. Enter C.S.C. Paris as customer with XX1002 as Customer No.

General exercise for Enter Customer  

Create Stored Sales Parts

Windows:
Sales Part
 Inventory Locations
Inventory Part
Receive Inventory Part

  1. Enter Race Car as Sales Part and with XX18-100 as Sales Part No.
  2. Enter Ferrari Car as Sales Part and with XX18-200 as Sales Part No.
  3. Create relevant Inventory Locations.
  4. Create corresponding Inventory Parts
  5. Receive a sufficient number of parts of each into stock. 

General exercise for Sales Part

General exercise for Inventory Locations

General exercise for Purchased Inventory Part

General exercise for Receive Inventory Part

 

Create Non-inventory Sales Parts

Windows:
Non-Inventory Sales Part

  1. Enter Wheel Balancing as Non-inventory Sales Part and with XX63-100 as Sales Part No.

General exercise for Non-inventory Sales Part

Required Data

Entering Customer Order

Purpose: The purpose of this exercise is to set up the basic data required for running this particular functionality.

  1. Enter a customer order with C.S.C. New York (XX1000) as customer and wanted delivery date in a month's time. The order type should be QO, and you should use your User ID as the coordinator. Note the order number: __________ .

  2. Enter an order line with 10 pcs of the sales part Race Car (XX18-100).

  3. Enter a second order line with 3 hours of Wheel Balancing (XX63-100).

  4. Release the customer order and verify that it has Invoiced/Closed status.

  5. Enter a customer order with C.S.C. Paris (1002) as customer and wanted delivery date in a month's time. The order type should be QO, and you should use your User ID as the coordinator. Note the order number: __________ .

  6. Enter an order line with 2 pcs of the sales part Ferrari Car (18-200).

  7. Enter a charge line with 2 pcs Double Wrap Packing (20-2).

  8. Enter a second charge line with the Insurance (10-1). 

  9. Release the customer order and verify that it has Invoiced/Closed status.

General exercise for Entering Customer Order

Main Exercises

Create Credit Note (Credit Invoice) for a Price Adjustment

Purpose: The purpose of this exercise is to show you how to generate a credit note (credit invoice) matching a previously created customer invoice.

Windows:
Create Customer Credit Invoices
Customer Invoice
Print Customer Invoices

Note: This exercise assumes that a Customer Invoice has been created prior to this exercise. One of your customers, C.S.C. New York, was not happy with the last delivery and is demanding compensation. You agree to issue credit for five of the Race Cars.

  1. Open the Create Customer Credit Invoices window.
  2. Search for the customer order XX1000 from C.S.C New York created above.
  3. Create a credit note (credit invoice) by selecting the invoice line, right-clicking, and then clicking Create Credit Invoice.
  4. Open the Customer Invoice window. Query for customer order XX1000.

  5. Select the Customer Invoice/Lines tab. Reduce the quantity of parts to 5.

  6. Save the changes.
  7. Open the Print Customer Invoices window. Search for the created invoice, right-click and then click Print Invoice.
  8. Open the Archived Reports window and print the invoice.

Create Correction Invoice for a Price Adjustment

Purpose: The purpose of this exercise is to show you how to generate a correction invoice matching a previously created customer invoice. This can be used as a substitute to the credit invoice created in the exercise above.

Windows:
Create Customer Correction Invoices
Customer Invoice/Lines
Print Customer Invoices

Note: This exercise assumes that a customer debit invoice has been created prior to this exercise. It is also possible to perform a similar exercise for a debit collective invoice and previously created correction invoice. One of your customers, C.S.C. New York, was not happy with the last delivery and is demanding compensation. You agree to perform a correction for five of the race cars.

  1. Open the Create Customer Correction Invoices window.
  2. Search for customer order XX1000 from C.S.C New York created above.
  3. Create a correction invoice by selecting the invoice line, right-clicking, and then clicking Create Correction Invoice.
  4. Open the Customer Invoice window. Query for customer order XX1000.
  5. Click the Customer Invoice/Lines tab. You will notice two lines are displayed. (The first is the debit line and the second the credit line). Reduce the invoiced quantity to 5 on the debit line. Note: You can modify the values of the fields Invoiced Qty, Sales Price/Curr, Sales Price incl. Tax/Curr, Group Discount and Tax Code. 
  6. Open the Print Customer Invoices window. Search for the created invoice, right-click and then click Print Invoice.

Create Credit Notes for RMA

Purpose: The purpose of this lesson is to return and scrap parts, connect a customer invoice to the returned parts and to generate a credit note.

Note: It is possible to generate a credit note independent of material returns.

Windows:
Customer Invoice
Return Material Authorization
Return Material Authorization Lines
Print Customer Invoices
Archived Reports

  1. Open the Customer Invoice window and search for your customer, C.S.C. New York (1000) . Review the customer invoice, especially the invoice lines. Note the invoice number: _______ .

When the order arrives at their premises, C.S.C. New York is not fully satisfied with the delivery. Three of the car chassis' are not according to their specifications and the ordered wheel balancing was not completed.

  1. Open the Return Material Authorization window and create a header, using C.S.C. New York as the customer. Note the RMA number: _______.

The salesperson responsible for the customer approves the return of the three race cars and that the correction on the customer invoice can be performed accordingly. For the wheel balancing, CSC New York and IFS Racing agree on performing a correction only for the one hour that was not performed.

  1. Enter the sales part numbers, the number of each to be returned/credited, and the return reason for both parts.
  2. Connect the return lines to the customer invoice number.
  3. Release and approve the return request for credit. 
  4. Print the return report and review it.

When the parts arrive at our premises, the receipt staff controls and reports how many cars were received.

  1. Right-click in the Return Material Authorization Lines window and then click in Receive, Scrap and Return into Inventory and enter the returned quantity.
  2. Once the the parts are inspected, use the Return Material – Receive, Scrap and Return into Inventory window to indicate what is to be done with the returned parts. Scrap all the returned cars, using at least two of the scrapping causes.
  3. Also report, as a return, the hour of wheel balancing service that was not performed. Is it possible to scrap the Wheel Balancing? Why not? Check that the status of the line is Returned/Completed.
  4. Create a credit note for the customer in the Create Credit Invoice, which you can reach through an Operations menu option in the Return Material Authorization window. 
  5. Right-click the Print Customer Invoices window and print the credit note.
  6. Review the result in Archived Reports window.

Create Correction Invoice for RMA

Purpose: The purpose of this lesson is to return and scrap parts, connect a customer debit invoice/correction invoice to the returned parts and generate a correction invoice.

Note: It is possible to create a correction invoice in the return material authorization process independent of material returns. 

Windows:
Customer Invoice
Return Material Authorization
Return Material Authorization Lines
Print Customer Invoices

  1. Open the Customer Invoice window and search for your customer, C.S.C. New York and customer order XX1000 . Review the customer invoice, especially the invoice lines. Note the invoice number: _______ .

When the order arrives at their premises, C.S.C. New York is not fully satisfied with the delivery. Three of the car chassis' are not according to their specifications and the ordered wheel balancing was not completed.

  1. Open the Return Material Authorization window and create a header, using C.S.C. New York as the customer. Note the RMA number: _______.

The salesperson responsible for the customer approves the return of the three race cars and that the customer invoice can be credited accordingly. For the wheel balancing, C.S.C New York and IFS Racing agree on crediting only for the one hour that was not performed.

  1. Enter the sales part numbers, the number of each to be returned/credited, and the return reason for both parts.
  2. Connect the return lines to the customer invoice number.
  3. Release and approve the return request for credit. 
  4. Print the return report and review it.

When the parts arrive at our premises, the receipt staff controls and reports how many cars were received.

  1. Open the Receive, Scrap and Return into Inventory window through the Operations menu option in the Return Material Authorization Lines window and enter the returned quantity.
  2. Once the the parts are inspected, use the Return Material – Receive, Scrap and Return into Inventory window to indicate what is to be done with the returned parts. Scrap all the returned cars, using at least two of the scrapping causes.
  3. Also report, as a return, the hour of wheel balancing service that was not performed. Is it possible to scrap the wheel balancing? Why not? Check that the status of the line is Returned/Completed.
  4. To create a correction invoice right-click anywhere in the header and click Create Correction Invoice.    
  5. To view the invoice select the RMA line, right-click and then click View Credit/Corr. Invoice.
  6. You can modify the values of the fields Invoiced Qty, Sales Price/Curr, Sales Price incl. Tax/Curr, Group Discount and Tax Code found on the debit line as appropriate.
  7. Go to the Print Customer Invoices window and print the correction invoice by using the Operations menu.

Credit Charges

Windows:
Return Material Authorization

C.S.C Paris regularly pays extra for the packing, but since the last order was delayed, IFS Racing has agreed to send one order by with the packing free of charge. 

When receiving the invoice, CSC Paris informs IFS Racing that they have incorrectly been charged for the packing. 

  1. Open the Return Material Authorization window and create a header, using C.S.C. Paris (1002) as the customer.
  2. Click the Credit Charges tab. Enter Double Wrap Packing as charge type for the order number created above.
  3. Release and approve the return request for credit.
  4. Create a credit note for the customer by right-clicking in the Return Material Authorization window and then clicking the Credit Invoice window.
  5. Right-click and then click Print Customer Invoices to print the credit note
  6. Go to the Archived Reports window to view the result.