Purchase order invoice Reversal when costing is involved

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Posted on by DP-21070618-0

Hi All,

Once a Purchase Order Invoice is posted in D365 F&O, it cannot be directly reversed.

What is the recommended standard process to completely reverse the transaction while meeting the following requirements?

1. The financial impact of the invoice is fully nullified.
2. GST and TDS postings are completely reversed without GL being directly used manually.
3. The inventory quantity gets corresponding negative impact.
4. The inventory cost/value has nullifying impact as well.
5. Balances in GL has corresponding impact too.

is it correct approach to copy PO lines with negative quantity and then process the entire PO with negative impact.

Please help and correct me where my understanding is wrong!!

Thanks in advance.

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Dynamics 365 Finance

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Aayush Tiwari 47 on at

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For this i suggest to create a new purchase order and then to create lines in the purchase order go to Purchase action pane > Create > Credit note.
Then select the posted invoice number which you want to reverse, keep the Tax as per original invoice as true then click OK to create purchase order lines with quantity with a negative sign.

Now post the product receipt and invoice to reverse the following :-
1. The financial impact of the invoice is fully nullified.
2. GST and TDS postings are completely reversed without GL being directly used manually.
3. The inventory quantity gets corresponding negative impact.
4. The inventory cost/value has nullifying impact as well.
5. Balances in GL has corresponding impact too.

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