AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

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Hi Community,

Today I'm here with a scenario.

Wo sold 10 items to a customer with price of $200 each. When customer recieved the items and he told us that 1 item is damaged. And he will not pay $200 for this item. So we asked him to retain this item and pay us $150 for this item. Now how we can decrease price of this item to actual as this was invoced at price $200 but actually customer will pay us $150.

Thanks in advance.

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Dynamics 365 Business Central

Microsoft Dynamics NAV

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GS-05081026-0 18 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

Hi,

There are two ways to handle this scenario:

1) Issue a Sales Credit Memo for that item with unit price 200$ and a new Sales Invoice with unit price 150$. This way you will adjust both the accounting entries, the Item Ledger Entries and the Value Entries.

2) Issue a 50$ Sales Credit Memo using line type "Charge (item)" linked to the related Posted Sales Shipment. This way you will not create any Item Ledger Entry but only a Value Entry that decreases the value of your sales and at the same time adjust the accounting entries by diminishing the income amount in the G/L account.

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Gerardo Rentería Ga... 22,992 Most Valuable Professional on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

Hi, good day
I hope this can help you, and give you some hints.

Mastering Credit Memos: The Ultimate Guide to Setting Up and Streamlining Your Finances in Business Central

Create Sales Credit Memo for Price Adjustment with Item but not hitting inventory and update Sales GL#411004

Best Regards
Gerardo

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Pallavi Phade 398 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

Namaste ,

You can create a credit memo with a G/L account line item of $50 and apply it against the invoice of $2,000(200*10 items). After applying the credit memo, the outstanding amount on the invoice will be $1,950. You can then apply a payment of $1,950 against the same invoice, thereby clearing it in full.

Please verify the answer if you find helpful

Regards

Pallavi Phade

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Sumit Singh 3,691 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

Hi,

The best approach is to issue a sales credit memo for the $50 difference and apply it to the original invoice. This ensures accurate AR and revenue reporting without impacting inventory. If items aren’t returned, use a G/L account line or a sales journal to avoid inventory adjustments.

Mark true, “Does this answer your question” if it helps.

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Valentin Castravet 28,409 Super User 2025 Season 2 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

If you do any reporting off of the inventory subledger the best way to correct this would be with a credit memo with an item charge - I wrote a blog post about it here How to Credit an Item Without Putting it Back in Inventory - Dynamics 365 Business Central Insights

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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PRao 302 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

There multiple approach to handle this scenario.

The common and correct approach is - You can create a credit memo using Create Corrective Credit memo action from the posted sales invoice with quantity 1 with correct unit price ($-150) in second line.

Create a Manual Sales Credit memo with 1 quantity with $50 and apply it to original invoice.
this is automatically applied with same Posted sales Invoice.

Also, you may create sales credit memo and in sale line select type G/L and defined the G/L Account no. with qty 1 and amount $50. also apply with original sales invoice to.

Also check your costing method and run the report adjust cost item entry with post to g/l.

I hope this above approach will help you to manage your scenarios.

Thanks,
PRao

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YUN ZHU 90,466 Super User 2025 Season 2 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

If the items are not returned, using Sales Journal may be faster.

Just a simple example:

Thansk.

ZHU

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RockwithNav 8,018 Super User 2025 Season 2 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

Many ways to handle this and GL but the recommended way is to go with Credit Memo with application to the posted invoice. With this everything will be settled.

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Suresh Kulla 49,402 Super User 2025 Season 2 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

You an create a credit memo for $50 as this is the credit for the customer and it will adjust the AR and your revenue accordingly.

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Chavda Dharmendra 702 on at

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AJUSTMENT OF DAMAGED ITEMS SOLD TO A CUSTOMER

Hello,

You can create a credit memo using Create Corrective Credit memo action.

once Credit memo is created then update original line Quantity to 1 and create new line with1 quantity and unit price - $150.

Once you post the credit memo, the remaining amount against that invoice will be $1,950.

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