Dynamics Community Forum Thread Details

PO Credit Note and PO Invoice Cancel Option

As per current process credit note option is available but that option is only feasible when inventory is also required to be adjusted.

There are scenarios where a credit note is required but inventory adjustment is not required. A credit note simply means i am not paying the vendor anymore may be full or partial but that does not necessarily means i am also taking out the inventory quantity. It can be any other reason like vendor send the invoice with different price and then later on send the credit note. Sometimes getting a new invoice is not viable instead vendor send credit note later on. There can be any dispute and remaining amount is no longer required to be paid for that invoice. A simple amount only credit note should be available to reverse the sock cost and vendor payable.

Then there is no option to cancel the PO invoice, What if user entered wrong invoice number by mistake and post the invoice. Vendor invoice number is a non financial information shared by the vendor, but still it need to be specified correctly for Audit and reconciliation purpose. If an invoice is posted due to any type of mistake it should be cancelled and user to should be able to enter the correct invoice.

There is no logical explanation we can give to a client that now you have to create a credit note, reverse your inventory which has nothing to do with it and it was received through complex advance warehousing processing and still available physically and then raise a new PO which supplier does not need, he already exported the goods on the previous PO from overseas and we are not sending the PO to him, and then receive that New PO because you have to add back the inventory but not physically through warehousing operation obviously, you have to select the warehouse, location, batch, license plate manually for all the 100 lines, then raise the correct invoice.

Need Help how to handle these scenarios

Categories:

Dynamics 365 Supply Chain Management

Credit notes without inventory impact

Current behavior: In D365FO, when you post a vendor credit note against a purchase order invoice, the system assumes it’s tied to inventory. That means it tries to reverse both the vendor liability and the inventory cost/quantity.

Business reality: Often, credit notes are purely financial (price disputes, discounts, penalties, wrong charges) and should not touch inventory.

Native options:

Vendor invoice journal: You can bypass the PO and post a credit note directly in the vendor invoice journal. This lets you reverse the payable without affecting inventory. However, it doesn’t tie back to the PO invoice for reconciliation.
Price adjustments: If the issue is price-only, you can use invoice matching and price corrections, but this is limited once the invoice is posted.

Customization approach: Many organizations add a customization to allow “amount-only” credit notes linked to the PO invoice, so inventory isn’t touched. This is often implemented by extending the PurchParmTable logic to skip inventory reversal when a flag is set.

Cancelling or correcting a posted PO invoice

Current behavior: Once a PO invoice is posted, it cannot be cancelled. The system enforces financial integrity by requiring a credit note to reverse it.

Problem: If the only mistake is a wrong vendor invoice number (a non-financial field), forcing a full reversal is excessive.

Native options:

Invoice number correction: Unfortunately, the vendor invoice number field is locked after posting. There’s no standard way to edit it.
Workarounds:
- Use the vendor invoice journal for corrections (but again, this doesn’t tie back to the PO).
- Add a custom editable field for “Corrected vendor invoice number” to capture audit corrections without reversing the invoice.

Customization approach: Some companies customize the invoice posting form to allow editing of non-financial fields (like vendor invoice number) post-posting. This keeps audit integrity while avoiding unnecessary reversals.

Note- This approch and solution from Open AI. Please go through this and let me know if this work or not.

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