Raise a Credit Memo Using the Correct action

Overview

Learn how to correct an unpaid posted purchase invoice by using the Correct action.

Why Use the Correct Action?

If a purchase invoice was posted in error or if the vendor requests changes, you can use the Correct action. This automatically cancels the original invoice and creates a purchase credit memo to reverse the transaction.

Note: The Correct action is only available for unpaid posted purchase invoices. If the invoice has been partially or fully paid, you must manually create a corrective purchase credit memo or use a purchase return order if items are being returned.

Tip: If you already know the posted purchase invoice number, you can search for it using the search bar in the top-right corner of the page.

How to Raise a Credit Memo Using the Correct Action?

Here’s we’ll search for the posted purchase invoice from the vendor card.

Go to the Vendor Card.
Select Vendor. Then, select Ledger Entries.
The Vendor Ledger Entries page displays all transactions for the vendor.
Filter the Document Type to display only Invoices.
Select the entry that needs to be corrected. The posted purchase invoice displays.
Select Home. Then, select the Correct action.

Note: When you use the Correct action on a posted purchase invoice, it is cancelled and a new invoice with the same details is created.

Note: If you have created and posted a purchase invoice directly, the Correct action will direct you to a new version of the purchase invoice with line-item fields copied from the canceled purchase invoice so you can make your corrections.

Note: If the posted purchase invoice came from a purchase order, it’s better to use Cancel instead so you can update the original order.
Select Yes to view the credit memo or No to remain on the page.

Note: A credit memo is automatically posted to reverse the original invoice, along with all related financial and inventory entries. The Cancelled and Paid checkboxes on the original invoice are ticked. This updates your records and keeps a copy of the credit memo as an audit trail.
A message displays confirming the credit memo was successfully created.
Select Yes to view the posted credit memo, or No to stay on the current page.
You can now review and update the corrections on the purchase order or purchase invoice.
Then, Release the purchase order.
Post your purchase order or invoice.
Select Home. Then, select Post. Select Post again.
A message displays requesting you to select either Receive, Invoice or Receive and Invoice.
1. If you select Receive, the goods on the purchase order are receipted.
2. If you select Invoice, the vendor invoice is posted.
3. If you select Receive and Invoice, the goods are receipted, and the invoice is posted in one step.
Select OK to continue or Cancel to stay on the page.
You’ve successfully raised a credit memo using the Correct action.

Note: You can view your correct invoice from the Posted Purchase Credit Memo by selecting the Correct action. Then, select Show Cancelled/Corrective Invoice to view the original invoice.

What’s next?

Aside from the Correct action, the other two options to correct your posted purchase invoice are to Cancel or create a corrective purchase credit memo.

Need more help?

No problem, that’s what we’re here for. Email us at support@wiise.com if you need assistance.