I recently completed my ICB level 1 mock exam and in it was an exercise that I simply couldn't work out.
It showed an invoice that had been added up incorrectly, there was 5% discount which had been ADDED to the value and the VAT had been taken off the value.
I had to state wether or not I would authorise payment and what action i needed to take.
In the end I said that I would not authorise the payment and that I would request a new invoice from the supplier, I later spoke to someone else doing the same test and they said that they authorised the payment for the CORRECT amount and used the purchase order as the source document until the amended invoice could be issued.
I am a little worried now because this will cost me 5 points if I get it wrong.
Any ideas as to wether or not I have done the right thing???
I would have stated that I would not authorise the invoice and contact the supplier for a new invoice. If this happens where I work I would never process an incorrect invoice or process one from a purchase order, I would wait for the new invoice and accrue the correct amount if necessary.
It's something to do with Trade and cash discount. (Page 25 lesson 4) in my manual.
The difference is credited and debited, apparently.
I say apparently, because in all my years of bookkeeping, I have NEVER come across anything like this in real life. But there you go - it is obviously still part of the lessons, and therefore legal.
