A supplier grants a $500 credit for an overcharge on a previously approved invoice. Which transaction should reflect the reduction?

A Supplier Invoice Adjustment is the specific Workday business process used to create a credit memo or debit memo against a previously posted supplier invoice. In this scenario, the supplier has granted a credit for an overcharge, which directly reduces the amount owed. Creating a supplier invoice adjustment for a credit amount correctly records this transaction, links it to the original invoice, and ensures the accounts payable ledger is accurate.

A. Purchase requisition: A purchase requisition is an internal request to procure goods or services and occurs at the beginning of the procure-to-pay cycle, before an invoice is ever created.

B. Customer invoice: A customer invoice is used to bill a company's own customers for goods or services provided. This scenario involves a credit from a supplier.

C. Receipt correction only: A receipt correction adjusts the quantity or details of goods/services received. While a receipt issue can lead to an invoice dispute, the direct financial correction for an overcharge is an invoice adjustment, not just a receipt change.

1. Workday Financial Management Documentation, "Supplier Invoice Adjustments" section. This official guide details the use of the Create Supplier Invoice Adjustment task. It explicitly states, "You can create a supplier invoice adjustment to create a credit memo or debit memo for a supplier invoice. For example, you can create a credit memo if a supplier overcharges you." This directly supports using this transaction for the described scenario.

2. Workday Procure-to-Pay Training Manual, "Managing Supplier Invoices" module. This training material outlines the end-to-end invoicing process. It specifies that after an invoice is approved and posted, any subsequent monetary corrections, such as credits for overcharges or returns, must be handled through a Supplier Invoice Adjustment. This process ensures a clear audit trail back to the original invoice.