How to correct Cost entries with New Costs Posting enabled

Learn how to correct Cost entries when an allocation code or a Purchase Invoice amount needs to be fixed, or when a posted Sales Invoice needs its underlying Cost closed and recreated.

Table of Contents

Note: Scenario 1. The shares on allocation code or Lease Unit areas were wrong, and no Charge entries have been created yet Note: Scenario 2. The Purchase Invoice amount was wrong, and the Sales Invoice has not been created yet Scenario 3. The Sales Invoice was already posted, and the Charge entries from a Cost entry should not have been included Note:

This guide explains how to correct Cost entries and the related Charge entries when an allocation code, a Purchase Invoice amount, or a posted Sales Invoice needs to be fixed. Which approach works depends on how far the process has already progressed: whether the Charge entries have been created from the Cost yet, and whether the Sales Invoice has already been issued. Find the scenario closest to yours.

Note:

This guide covers cases related to correcting Cost entries (for example, when actual costs need to be recharged to the tenant). It applies when New Cost Posting is enabled. For corrections that do not involve Cost, see the main guide: How to handle Sales Invoice corrections and returns.

Scenario 1. The shares on allocation code or Lease Unit areas were wrong, and no Charge entries have been created yet

Example: You posted Cost entries in the Service Journal, but notice the shares on allocation code or Lease Unit areas used were wrong, so the cost was split incorrectly across Lease Units. No Charge entries have been created from this Cost yet.

  1. Open Service Ledger Entries.
  2. Select the incorrectly allocated Cost entries.
  3. Choose the Reverse Entry action.
  1. Update the shares on the allocation method or Lease Unit area. 
  2. Open Service Journal and choose Create Cost Lines again to recreate the Cost entries with the corrected allocation.
  3. Continue as usual: choose Create Charge Lines, post the Charge, and issue the Sales Invoice.

Note:

This approach only works while the Charge entries have not yet been created from the Cost.

Scenario 2. The Purchase Invoice amount was wrong, and the Sales Invoice has not been created yet

Example: You already posted the Purchase Invoice, created the Cost entries, and created the Charge entries from them, but before creating the Sales Invoice you notice the Purchase Invoice amount was wrong.

  1. Create and Post a Purchase Credit Memo for the original Purchase Invoice.
  2. Post a new Purchase Invoice with the corrected amount.
  3. In Service Journal, choose Create Cost Lines. This creates Cost entries for both the Purchase Invoice and the Purchase Credit Memo. Post the Cost entries.
  1. Choose Create Charge Lines to create Charge entries. Post Charge entries.
  1. Create the Sales Invoice as usual. Depending on the One document for positive and negative lines setting used when creating RE Invoices, the corrected amounts will either be included in the same Sales Invoice, or a separate Sales Credit Memo will be created for them.
 
If you don't want both lines (the original amount and the correcting negative amount) to appear separately on the Sales Invoice, you can close them manually in Service Ledger Entries using the Close Entries action.

 The Sales Invoice will then include only one line, with the corrected amount.

Scenario 3. The Sales Invoice was already posted, and the Charge entries from a Cost entry should not have been included

Example: You posted the Sales Invoice, but then noticed that the Charge entries created from a Cost entry should not have been included.

  1. Use Create Corrective Credit Memo on the Sales Invoice. When asked whether to cancel the Service Ledger Entries, choose Yes.
  2. After the Sales Credit Memo is posted, choose Cost lines in Service Ledger Entries and close them using the Close Cost Entry action.
  1. In Service Journal, create Charge entries again, post them and issue the Sales Invoice.

Note:

If the Sales Invoice included Charge entries that are not based on a Cost entry, those will be created again in Service Journal. Only the Charge entries that would come from the closed Cost entry are not included.