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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Posting Credit Note to...
Finance | Project Operations, Human Resources, ...
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Posting Credit Note to PO - Invoicing Error

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Posted on by Community member 5
An error was made on on a PO-related invoice. The full quantity of the PO was processed on the invoice, but only one line was actually invoiced from the vendor at the time. I have other invoices now coming in for the rest of the un-invoiced lines but I can't reverse the invoice that was processed in error. Is there a way to process a credit note to relieve the erroneous invoiced amount from the PO? I don't want to create new lines on the PO, as I'm not returning any material. We are using Microsoft 365 for Finance & Operations.
  • Verified answer
    Fasih Profile Picture
    Fasih 392 on at
    Posting Credit Note to PO - Invoicing Error

    Yes, the best way is to create a Credit note for posted invoice, please find below way to post a credit note:

    1) Go to the Accounts Payable module in your Finance & Operations system. Find the invoice that you want to correct.

    2) Create a new credit note document associated with the original invoice. This credit note should contain the same invoice number as the original invoice, but with negative amounts for the lines you want to correct.

    3) Add line items to the credit note for the quantity that was erroneously invoiced. Use negative quantities and negative amounts to offset the incorrect invoice. You are essentially crediting the erroneous invoice line. Make sure to reference the original purchase order number on the credit note.

    4) This will link the credit note to the original PO and invoice. Verify that the accounting entries correctly offset the erroneous invoice. You should see a reduction in accounts payable and an appropriate credit to the vendor. If you have already made a payment for the erroneous invoice, you may need to adjust the payment accordingly. This could involve either reducing the next payment to the vendor or requesting a refund.

    Hope this answer will help you.

  • Community member Profile Picture
    Community member 5 on at
    Posting Credit Note to PO - Invoicing Error
    The invoice was created in error for the full amount of the PO and automatically matched all available receipts for all 5 lines of the PO. The vendor only invoiced 1 line. The problem is that now the invoices for lines 2-5 are coming and we can't issue the invoices against those lines, as there's nothing to match against. I want to correct the invoice to show the correct amount and for only the line that was invoiced. 
  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,220 Super User 2024 Season 2 on at
    Posting Credit Note to PO - Invoicing Error
    Why do you want to reverse the invoice for the one line?  Just match your new invoices to the remaining PO lines and invoice them.

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