How to correct a stock item's price or quantity on a sales or expense invoice

Sales credit notes will always increase stock quantity and expense credit notes will always decrease stock quantity and have an impact on cost prices - Average Cost recalculates and Last Cost price updates where applicable. There may be scenarios where you don't want to impact stock levels. For example, where goods are not returned but there is a change in price. Follow the steps below to ensure that your stock quantity and cost price remain correct.

Scenario 1 - Create a credit note to correct the price error on an invoice

If you want to correct an error with a price on a sales or expense invoice, you must create a credit note to reverse the original invoice in full and then create a new invoice for the correct price. This ensures that the postings and customer or vendor accounts are correct, stock quantities are maintained, and in the case of expense invoices, that the average or last cost is updated.

Example

You processed a sales invoice for a stock item with a quantity of 100 and a price of $10. However, the price should have been $5 and you now need to correct it, but you do not want to edit the stock quantity.

Solution

The stock levels remain at 100, but the price is now correctly recorded as $5.

1. Create a credit note for the stock item - 100 quantity @ $10
2. Create a new invoice for the stock item - 100 quantity @ $5.

Scenario 2 - Create a credit note to correct the quantity on an invoice

If you need to correct an error with the quantity on a sales or expense invoice, you must complete one of the following options:

1. Create a credit note, or an invoice for the change in quantity.
2. Reverse the invoice in full, then create a new invoice for the new quantity (as per scenario 1).