Value corrections
Value correction consists in change of sales or purchase price of item in relation to price from source invoice. In order to issue value correction user has to:
- Select source document, click with right mouse button and select from context menu position “Add value correction”
- Select source document and click [Add Value Correction] from the Correction buttons group
If it’s possible to issue a correction, a correction form will appear on the screen. In document’s header user can change: date of issue and date of sale.
Note: Possible value corrections are ‘in plus’ or ‘in minus’
Unlike quantity correction, there are two types of value correction: in plus and in minus. In case of the first type, item price increases and in case of the second type it decreases. Value correction can correct price (value) of all items in a source document or of part of the elements only.
Note: Value correction can be issued for the whole quantity or part of it only
Items of correction are retrieved from source document. The system displays on the screen following information: code of item, quantity, unit, VAT rate and base price. Until user enters value of correction – column Total contains only zeros.
Item modification – i.e. determining which invoice items are being corrected. Correction value of particular items may consists in changing item value/price.
In order to change the items price, each of the item details must be previewed by clicking the [Edit]button in the Items menu or by double-clicking on the item with the left mouse button. In the opened form, a new item price is entered in the Discounted Price field. Correction value can also be changed in item details form, in the Value field.
Note: Prices, changed (decreased or increased) with the previous corrections, are taken into account while generating every other correction to one document
Correction can correct value of document in plus or in minus. It’s important to remember that while issuing next correction for document user can see previously corrected values. User doesn’t correct again source document but he corrects documents of all previous corrections together with source document.
Value correction regarding the whole quantity
Value correction is called price correction because change of element value boils down to the change of item price (quantity stays the same). This fact can be observed at the moment of issuing next correction for the same document. Then price of item on corrected previously element is different than on source document. Example mentioned below presents such situation.
Example
|
Document |
Item Quantity |
Item Price |
Item Value |
Correction Value |
Average Price |
|
1. SI |
10 |
5 |
50 |
|
5 |
|
2. SIC |
10 |
7 (previous value 5) |
70 |
20 |
7 |
|
3. SIC |
10 |
6 (previous value 7) |
60 |
-10 |
6 |
Description (meaning):
– first column shows type of issued document
– second column shows quantity of item on source document or quantity taken to be corrected
– third column shows actual price of item, in brackets previous price (calculated on base of previous documents)
– fourth column shows value of element of issued document considering quantity and actual price
– fifth column shows value of correction
– sixth column shows average price of one item on element after issuing a document, taking into consideration previous documents.
- rows mean successively issued documents.
As the mentioned above example shows, correction can correct value of document in plus or in minus. It’s important to be aware of the fact that while issuing next correction for document, available are only previously corrected values. User doesn’t correct again source document but he corrects documents of all previous corrections together with source document.
Value corrections regarding part of the quantity
While issuing value corrections user can change not only price of item, but also the quantity to which this change should be applied.
Example
|
Document |
Item Quantity |
Item Price |
Item Value |
CorrectionValue |
Average Price |
|
1. SI |
10 |
5 |
50 |
|
5 |
|
2. SIC |
10 |
7 (previous value 5) |
70 |
20 |
7 |
|
3. SIC |
10 |
6 (previous value 7) |
60 |
-10 |
6 |
|
4. SIC |
5 |
2 (previous 6) |
10 |
-20 |
4 |
|
5. SIC |
2 |
5 (previous 4) |
10 |
2 |
4,2 |
It’s important to remember that:
1. In case of value correction for part of quantity of documents accepting item to warehouse, item resources aren’t divided into two different resources (part with „old” price and part with new one), only value of the whole resource is increased/decreased with value of correction
Example
Acceptance of 100 items of a merchandise, with price 2 USD, resource value 200 USD
Value correction for 20 items, with price 3 USD, correction value 20 USD
On list of resources there will be still one resource: 100 items, with value 220 USD, with average unit price 2.20 USD.
2. In case of issuing warehouse document to trade document, quantities and values on warehouse document are identical with quantities and values on trade document (documents are then converted 1:1). Example:
- SI for 100 pieces of items, with price 2 USD, value 200 USD
- SIVC value correction for 20 pieces, with price 3 USD (correction value 20 USD)
After creating SOR two warehouse documents are created, where quantities and values are consistent with trade documents:
- SOR for 100 pieces of item, with price 2 USD, value 200 USD (connected with SI)
- SORVC changing price for 20 items, into price 3 USD (connected with SIVC).
3. In case of conversion of warehouse document into trade document, if first warehouse document is issued (SOR, POR…), next to warehouse document value correction for part of quantity is issued and then warehouse document is converted to trade document (PI…)– then on trade document the system calculates average price of item
Example
SOR for 100 items, with price 2 USD, value 200 USD
SORVC: value correction of 20 items., to price 3 USD (value 20 USD)
After conversion to SI, on SI 100 items are displayed with average price 2.20 USD (value of items is correct – 220 USD)
In case of conversion of warehouse documents to trade documents, where for SOR (POR…) document value corrections for part of quantity were issued, a situation can occur when value of issued SI will be different than sum of SOR and VCSOR values. It results from invoices, that during conversion the system calculates average price (rounded to two places after coma) and on its basis calculates new value of items.
If for one document user issues several corrections then with every correction the system checks what quantity of items remains to be returned.
Elements displayed on correction document have the same elements as elements of corrected document. There are two additional fields:
1. Value before correction – means average end price of item on document’s element, obligatory before issue of current correction
2. Value after correction – means value of correction. Value is displayed as net or gross amount, depending on the method of calculating values on source document: with net or gross price
While issuing a new correction “Price before correction” equals “Discounted price” and “Value of correction” equals 0.
Only after edition of element and entering changes on it, field “Discounted price” can differ from “Price before correction”.
Value of value correction equals sum of values of corrected elements. So it equals sum of corrected values of each of elements.
VAT table is calculated analogically like it is on other documents. Additionally user has to remember that on correction he can’t modify VAT rates, so corrected elements have the same rates as source document.