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Process of Price Difference Invoices

Sometimes, the amount of billing which come from vendor can be higher than it should be. In this case, you can enter the subsequent credit for it.

 

You can manage this process by two steps.

 

1) Entry Invoice

 

Firstly you can enter the invoice which come from vendor

 

2) Subsequent Credit

 

After the enter the invioce that come from vendor you can enter The Subsequent Credit for reduce the amount that entered in first step for reduce the amount that entered.

 

By posting a subsequent debit/credit, the system updates the ordering transaction on a value basis but not on a quantity basis. The quantity invoiced therefore does not change, but the total value invoiced does.

 

The maximum quantity you can subsequently debit or credit is the quantity that has already been invoiced. It is not possible to post a subsequent debit before an invoice.

 

 

Business Scenario

Although the actual amount was 15000 TRY but vendor sent you an invoice of 15100 TRY.

 

1) Entry Invoice

 

As you see on the screnshot – 1 ,  the system charged account of price difference. It posted debit for 100 TRY.

Screenshot – 1

 

 

2) Subsequent Credit

 

For clearing the account of price difference and reduce amount the invoice , you can enter Subsequent Credit.

 

As you see on the screenshot – 2, System posted credit for 100 TRY to account of the price difference.

 

Screenshot – 2

 

As you can see Transaction code MB5S on the screenshot – 3 , the amount of Invoice Receipt equalized the amount of good receipt about 15000 TRY

 

Screenshot – 3

 

Also The system records every subsequent debit/credit in the purchase order history.

 

2 Comments
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  • Some important points to note. If price is not agreed, you should receive credit from vendor. Also the postings differ, any price tolerance posts to vendor and original account assisgnment. Although this describes the technical process, the business factors are key to how the process should be managed.

    Nice summary article.

    • Considering the fact that Suatcan wrote an example in TRY I assume he had the Turkish process in mind.

      In fact in most of the countries you should get a credit note from your supplier however in Turkey such document as credit note does not exist. Such documents are recognized as ‘return invoices’ and issued by customer towards vendor. Moreover the VAT used for such return invoices should be output not correction of input.

      Simply saying – you issue an invoice to your vendor for price discrepancies.