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Posting Purchase Credit Memo - Entries applied to an Outbound Transfer cannot be unapplied.

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Posted on by CU27090506-0

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Hello,

Good day.

We are currently trying to post a Purchase Credit Memo against a Purchase Invoice. However, the items received under this invoice have already been transferred to another warehouse.

Because of this, we are encountering the following error:

Error Message: Entries applied to an Outbound Transfer cannot be unapplied.

We need to properly close the Purchase Invoice related to this Purchase Receipt. How do we proceed, given that the items have already been transferred?

Thank you!

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Dynamics 365 Business Central

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Tom_Gioielli 2,829 Super User 2025 Season 2 on at

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Moving to the Business Central forum.

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OussamaSabbouh 6,871 on at

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Hello ,

This is standard Business Central behavior: once items from a purchase receipt are applied to an outbound transfer, the receipt cannot be unapplied, so a Purchase Credit Memo cannot be applied to that invoice. To close the invoice, the supported solution is to post a Purchase Credit Memo without item application (financial correction only) if the issue is price-related. If the goods must be physically returned, you must reverse the inventory chain (transfer back, then return), which is often impractical. Do not force unapplication or delete entries—BC blocks this to protect inventory and cost traceability.

Regards,

Oussama Sabbouh

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OussamaSabbouh 6,871 on at

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Hello ,

This is standard Business Central behavior: once items from a purchase receipt are applied to an outbound transfer, the receipt cannot be unapplied, so a Purchase Credit Memo cannot be applied to that invoice. To close the invoice, the supported solution is to post a Purchase Credit Memo without item application (financial correction only) if the issue is price-related. If the goods must be physically returned, you must reverse the inventory chain (transfer back, then return), which is often impractical. Do not force unapplication or delete entries—BC blocks this to protect inventory and cost traceability.

Regards,

Oussama Sabbouh

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YUN ZHU 95,983 Super User 2025 Season 2 on at

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Hi, As of now, we can undo transfer shipments, but we cannot undo receipts.

https://learn.microsoft.com/en-us/dynamics365/release-plan/2023wave1/smb/dynamics365-business-central/undo-transfer-shipments?wt.mc_id=DX-MVP-5004336

https://experience.dynamics.com/ideas/idea/?ideaid=1cbd5ab0-b179-ef11-a4e5-6045bdb9fcc9

You can manually transfer it back and then manually select this new item ledger entry on the credit memo line.

Hope this can give you some hints.

Thanks.

ZHU

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