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Applies to Product – Dynamics 365 Business Central


What’s happening?
The customer is seeking guidance on the correct process for booking a vendor's credit note related to a billing amount variance when the items have already been consumed.


Reason:
Business Central is preventing the return of items that haven’t been received or aren’t available for return. Since the items have already been consumed, they cannot be technically "returned" to inventory.


Resolution:

  1. Create a Vendor Credit Memo for Amount Adjustment: Navigate to the "Purchase Credit Memos" page and create a new credit memo. Enter the vendor details and the credit memo number.
  2. Adjust the Billing Amount Variance: Fill in the details of the credit memo, including the items, quantities, and amounts. Adjust the amounts to reflect the billing variance.
  3. Use the "Purchase Price Variance" Account (if applicable): If applicable, use the "Purchase Price Variance" account to record the variance.
  4. Post the Credit Memo: Once all the details are entered and verified, post the credit memo. After posting, review the purchase entries and general ledger entries to confirm that the billing variance is reflected correctly.