Orchard Adjustments to Payments In Invoicing Procedures
Orchard Adjustments to Payments guidelines are given for Orchard suppliers and are a part of EDI program. Payments may be adjusted from time to time. When this occurs, the adjustment detail will be provided to the supplier via an EDI 812 Credit/Adjustment at the time the adjustment is calculated. The adjustment will be deducted from invoice.
Invoicing – Types of Adjustments
The following types of credit and debit adjustments will be communicated via EDI 812 Credit/Adjustment Advice. Not all adjustments will be transmitted to suppliers. At this time, adjustments for transportation claims will be mailed directly to the suppler.
Cost Claim Debit: Debit is created when the cost of an item on an invoice is greater than it is on the PO. Money is due to Orchard.
Quantity Claim Debit: Debit is created when the merchandise billed on the invoice is not received. This could be either a partial or complete shortage of merchandise. Money is due to Orchard.
Return Goods Invoice (RGI) Debit: Debit is created for defective, allowance, or excess merchandise. Money is due to Orchard.
Cost Claim Reversal Credit: Credit is created to refund the supplier for a previous deduction on a Source Cost Claim if the supplier is able to substantiate that the cost charged on the invoice was correct. Money is due to the supplier.
Quantity Claim Reversal Credit: Credit is created to refund the supplier for a previous deduction on a Quantity Claim if the supplier is able to prove that the quantity on the invoice was correct. Money is due to the supplier.
Debit / Credit Memo: Credit or debit may be created for a variety of reasons such as adjustments to invoices or claims, discount refunds, a reversal of an RGI, etc. Money may be due to Orchard or due to supplier.