How to reuse the SO/PO which is fully shipped, invoiced & reversed.

Before moving to the answer of How to reuse the SO/PO which is fully shipped, invoiced, and reversed. Let's first try to understand why we need to reuse a SO/PO that has been already fully shipped, invoiced, and then reversed with the Credit memo in the first place.


Scenario

Let's say I prepared a PO/SO and then completely Received/shipped it. At the time of the invoice, I made some mistakes and the invoice got posted with the wrong amount.


Now, what would you do next to correct this?


You would prepare a credit memo and apply this invoice again. This is the right way to handle this situation.


But, now you cannot reuse the SO/PO because the qty shipped/qty received and Qty invoiced are already updated. In this case, you are canceling the Invoice and in turn the order because of an internal data entry mistake. But the order details you have already shared with your customer and now if you create another order you have to ask your customer to ignore the previous detail and consider the new one. All this you have to do because of an internal mistake. So in case of such issues where the credit memo is prepared only to cancel the invoice due to internal error and not because of actual returns, it would be good if we can reuse the order again.


Solution

You go to Posted Invoice (Posted Purchase Invoice/Posted Sales Invoice) screen and use the Cancel or Correct option to create the Credit memo against the invoice. If you do so then the related order can be used again as the Qty Shipped field will now be updated with the original qty.


Note: The Invoice should not be created from the order screen as in this case the Order is deleted once the order is completely shipped and invoiced. Hence, no question of re-using the invoice.


Demonstration

Note: Here I will demonstrate the Cancel option only. But, the Correct option will also re-open the order similar to the cancel option.


I have created a Sales Order which is completely shipped and invoiced.


Now, I will go to Posted Sales Invoice screen and use the Cancel option to cancel this invoice. This option also creates a Credit Memo only in the background to reverse the impact.\



Proceed by clicking on YES.

You have now successfully canceled the invoice i.e. Credit Memo applied against the Invoice and posted.


Now, let's check our Sales Order.


You can see that the Quantities from Qty Shipped and Qty Invoiced have been transferred back to Qty to Ship and Qty to Invoice.


This means now we can use this sales order again.




That's all in this blog! See you in the next one.

Ciao!



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