Applying Credit Memo to Original Receipt Leaves Open Amount Accruing in Error

Summary:

The issue happening is the Amount Based PO’s are being received on and paid in full, then Payables gets a credit for the already paid debit invoice and we match it to the Original receipt on the PO. After the credit is processed, the funds are placed back on the receipt leaving an open balance that accounting is accruing in error because that amount will never be offset.

The work around discussed internally is for Payables to notify Supply Chain every time a credit is processed, so the receipt can be reversed to eliminate the open amount, but the Payables team processed 600+ credit memos last year and this solution would require a significant amount of extra work from both parties.