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Correct Invoice Errors with New Invoice Correction Process in Microsoft Dynamics AX 2012

Making mistakes is a very common thing to happen for human beings. One such thing that can sometimes happen is making a mistake on a free text invoice posted for a customer. After realizing the mistake, you of course want to correct it, but you may be worried that you don’t know how to do it – or that the system can’t make the correction.

Don’t worry – with the customer invoice correction process you can easily correct your posted free text invoice.

What is changed in Microsoft Dynamics AX 2012?

In Microsoft Dynamics AX 2009, correcting a free text invoice involved issuing a credit note against the incorrect customer invoice and creating a new customer invoice. In addition, you could not link the new customer invoice, corrected customer invoice, and customer credit note to one another.

In Microsoft Dynamics AX 2012, a new Correct Invoice button is added to the free text invoice details form and the free text invoice list page. After clicking the button, a new form will open where the user can adjust the necessary information and then post the correction.

Required System Configuration

Since the invoice correction feature is not enabled by default, you must enable it by going to the General ledger > Free text invoice correction configuration key in the License configuration form under System administration.

System configuration is required for free text invoice correction

Fig 1: System configuration is required for free text invoice correction.

Free Text Invoice Correction Process

Let us start with an example where you posted a free text invoice amount for USD $2,500 to Customer 1301-Whale Wholesales – but the amount should really be USD $3,000. You realize your mistake, and you want to quickly correct the free text invoice.

Posted free text Invoice with the wrong amount

Fig 2: Posted free text Invoice with the wrong amount.

The process for correcting a free text invoice involves the following steps:

  1. The user clicks Correct on the Free text invoice form.

    To correct a free text invoice, first click Correct Invoice

    Fig 3: To correct a free text invoice, first click Correct Invoice.

  2. Select the error code as “ERROR”, enter the invoice cancelling date and then click Create Corrected Invoice.

    Enter a reason code and a cancelling Invoice date to create  a corrected free text invoice

    Fig 4: Enter a reason code and a cancelling Invoice date to create a corrected free text invoice.

  3. The system then creates a copy of the original free text invoice.

    Created copy of the free text invoice after entering a reason code and a cancelling invoice date

    Fig 5: Created copy of the free text invoice after entering a reason code and a cancelling invoice date.

  4. Make the desired changes to the copied free text invoice.

    Make changes in the free text invoice copy

    Fig 6: Make changes in the free text invoice copy.

  5. Post the changed free text invoice.

    Post the changed free text invoice

    Fig 7: Post the changed free text invoice

  6. The system creates a credit note and all the original settlements are reversed and reapplied to the new credit note. An Infolog appears to show the successful completion of the process.

    Infolog showing the successful completion of the process

    Fig 8: Infolog showing the successful completion of the process

  7. The system creates a link between the Corrected, Credited (Canceling), and Original customer invoice for a clear audit trail.

    The previous free text invoice, credit note, and the corrected invoice are created during the process

    Fig 9: The previous free text invoice, credit note, and the corrected invoice are created during the process.

    Invoice corrections created during the process

    Fig 10: Invoice corrections created during the process.

    The original free text invoice that was corrected

    Fig 11: The original free text invoice that was corrected.

    The credit note automatically created during the correction process

    Fig 12: The credit note automatically created during the correction process.

    The new free text invoice created during the correction process

    Fig 13: The new free text invoice created during the correction process.

NOTE: You can also use the new free text invoice workflow configuration to approve the change.

Conclusion

As you can see, you are now able to easily correct any free text invoice which was posted with the wrong amount. After going through the correction process, the system cancels the incorrect one and posts a new one linked with the old one to meet the audit requirements.

If you have any questions about correcting free text invoices, or would like more information about Microsoft Dynamics AX 2012, please email us at dynamics@ignify.com.

Partha Chattopadhyay is a Manager in the Microsoft Dynamics AX practice at Ignify. Ignify is a leading provider of Microsoft Dynamics ERP solutions to mid-market and Enterprise businesses. Ignify has been ranked as Microsoft Partner of the Year Winner in 2012, 2011 and 2010, and in the Microsoft Dynamics Inner Circle, Microsoft Dynamics Presidents Club in 2009. Ignify has offices and team members in Southern California, Northern California, Arizona, Tennessee, Illinois, Washington, Canada, Singapore, Malaysia, India, Philippines, and Jakarta.

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