To correct a price on an invoice already posted that is linked to a shipment - customer wants a corrected invoice. This invoice had several line items with just 1 line item with incorrect price. Do we use correction invoice or just issue a credit for the entire invoice and create a misc. invoice? Would this still link to the original sales order (customer PO) then? We do not have any document type set up to try the procedure of corrected invoice - it would be nice if we could correct even after posting and have all the GL entries updated. Is this easy to set up?
Simply stated, a Correction invoice leaves the first invoice open and creates a second invoice for the difference, be it another debit memo (under charge) or a credit memo (over charge). The Original Invoice plus the Correction invoice equals the amount the customer owes.
A Cancellation Invoice creates a Credit Memo for the full amount and applies it to the Original Invoice, cancelling it out. The status of the Customer Shipment is changed from Invoiced backed to Shipped, the pricing in the Sales Order is updated and the Shipment is re-Invoiced creating a completely new Invoice for the correct amount.