AR Invoice Correction

When Invoices are created in the system there might be scenarios that invoice get created with incorrect amount , thus the business will need to take corrective action to correct the invoices.

There are various circumstances under which invoice correction  might be required

1. Under Invoicing
2. Over Invoicing
3. Invalid Transactions

Under Invoicing: Under Invoicing as the name suggests refers to the phenomenon in which an invoice is created for an amount less than the actual amount. In such cases since the customer is underbilled we need to have a correction mechanism to bill the customer accurately , the different mechanisms used to correct under invoicing might be

• Update the Invoice
• Create a Debit Memo

Over Invoicing:  Over invoicing is the opposite of under invoicing , here we have billed the customer more that the required amount, to correct this phenomenon the strategy that may be adopted is

• Updating the invoice
• Create a credit memo
• Refunds
• On Account Credit

Invalid Transactions:  There might be a situation in which an invoice is created for a wrong customer or with incorrect information , these type of transactions can be corrected by

• Voiding the invoice
• Deleting the invoice