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Exact cost reversing in credit memo

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Posted on by Yadegari

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We have a problem with purchase credit memos.

consider that we have posted a purchase invoice and transferred items from receiving warehouse to another warehouse. After that we need to return the purchased items to vendor. So, we transfer them back to receiving warehouse and create a credit memo from purchase invoice. in this case the item cost is not applied to item`s purchase price so it is issued by average cost (because item cost is applied to transfer order). this causes problem for us from costing Pov. is there any setup/workaround for this problem.

Thanks

Hamid

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Jun Wang 8,212 Moderator on at

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the issue is the cost of the transferred item has been applied to new item entry during the transfer. As a result, when creating the credit memo, nav is unable to apply original cost to that item. you could find from item ledger entries to find out the related entry no. , then use application worksheet to manually unapply application. you should be able to create credit memo.

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YUN ZHU 99,978 Super User 2026 Season 1 on at

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Hi, it is recommended that you enable the following setting, but you need to manually select Appl. to when posting credit memo.

Hope this helps.

Thanks.

ZHU

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Yadegari 126 on at

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Thank you both for your replies.

I did below test:

Posted purchases order for item A

Transfer it from location 1 to location 2

Transfer it back from location 2 to location 1

Create credit memo from posted purchase invoice.

Regarding using application worksheet, it is not possible to un-apply original purchase order from outbound transfer.

And regarding manually selection of entry in purchase credit memo line, it is showing only transfer order entry as it is open.

Would you please let me know your ideas?

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