We regularly enter zero dollar net invoices.
Some are purely free goods.
Most are due to the fact that at receiving, we will examine product coming in, match it against the PO, and verify the quantity received.
If the product doesn’t meet our criteria, we will refuse it.
Our vendors will invoice us for the refused product.
We will enter that invoice as a $-0- amount, with a comment that will appear on the remittance advice to that vendor’s next payment explaining why we changed the invoice amount to $-0-.
If the vendor’s collection department doesn’t have access or doesn’t read the remittance advice or their drivers don’t communicate back to them that the order was refused, they will keep the invoice open, on the statement of unpaid invoices they send to us, and will call about it. They will also re-send the invoice.
To prevent a replacement invoice from going in (under the same vendor/invoice number), and to provide a note to ourselves, as well as to the vendor, about why the invoice amount was zeroed out, we enter the invoice with a $-0- amount in the Payables system.