It depends on whether the inventory needs to be changed or not.
The biggest problem we have is when returns are posted. If the return is posted with a purchase order number entered, the return quantity will be "removed" from the PO and create a back-order situation. (MAS is assuming the item will be re-shipped from the vendor against the same PO). If this is the case and you are not expecting replacements, I've found 3 options:
1. You receive the item again and process a second return WITHOUT citing the PO number.
2. Receive the item and inventory adjust the item back out.
3. Post another invoice with a negative inventory quantity (to bring the inventory equal to invoice quantity, changing the invoice AMOUNT to ZERO to not affect the amount payable to the vendor. If you do this, you must also go back into the PO and clear the BO quantity that was created.
If the inventory on hand is not correct and an additional receipt (or return - now citing the PO number) will correct it, neither of these entries will affect the Vendor payable.
If inventory is correct and a vendor credit or adjustment invoice threw things out of balance (perhaps the credit was posted as and AP invoice instead of a PO invoice), I enter a new invoice through PO, use an Invoice number "ADJ####", enter the inventroy quantity to clear the PO, and change the amount to zero.
In the scope of my GL, none of these become significant amounts, so whether it falls into inventory adjustment, purchase returns, or purchase variance doesn't bother me too much. I look at the three numbers togther to get a sense of any problem trends developing. (I know this will upset the purists but it's the reality of "my world".)
Steve
