Clearing Not-Invoiced Receipts (NIR) and Inventory Clearing (IC) Open Balances

There are times when you create Material Receipts that you will never get a Vendor Invoice for. And, there are times when you get an invoice that you will never get a Material Receipt for. Clearing these 'Open' documents can be challenging because of how the Matched Invoice process works. This is especially important if you defend your Not-Invoiced Receipts (NIR) and Inventory Clearing (IC) open balances (like the BSD tool).

Removing a balance from Not-Invoiced Receipts (NIR)

The situation is that you completed a Purchase Order (PO), received the product via a Material Receipt (MR), and the Vendor Invoice (VI) never shows. After some time, you realize you will never get the VI, and you decide to clear the open/unmatched MR off your books.

NOTE: thoroughly document all records accordingly
Create a new VI and bring in the open MR lines from the above situation.
Create an extra Invoice line (with a Charge) equal and opposite of the MR values. This line makes the Invoice net to zero dollars.
Complete and post. Notice that the value that was in NIR has been effectively moved to the Charge account.
This will Debit your NIR liability and Credit your charge account (most likely an income account). The MR should no longer exist on your open report (BSD)

Removing a balance from Inventory Clearing (IC)

The situation is that you completed a Purchase Order (PO) and a Vendor Invoice (VI) for a product that you will never receive. If no products on the VI were received and the VI was not paid, you can simply Reverse Accrue the VI. Otherwise, perform the following:

NOTE: thoroughly document all records accordingly
Create a Credit Memo (CM) and import the PO lines for the qty and amount of your open Invoice lines.
Create a new Material Receipt (MR) and receive in both the open VI and CM lines.
The quantities for all products should net to zero.
Complete the MR. All CM and VI lines should now be matched and off your open report (BSD).

If you rarely perform these processes, executing them manually by a skilled person is probably fine. If this is a common occurrence, you will want to automate this process with a button on the VI Line and/or MR Line to help ensure proper documentation, accuracy and error checking.