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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Reversal of Purchase O...
Supply chain | Supply Chain Management, Commerce
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Reversal of Purchase Order Invoice

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Posted on by Andrew T 9

Scenario:

1. User created a PO for a service item using Procurement Category. Qty = 12.

2. The following actions have been taken but user entered and posted with the wrong quantity on Day 3:

- Day1: Received 6 units, invoiced.

- Day2: Received 4 units, invoiced.

- Day3: Received 2 units, invoiced. (This is wrong, actual quantity should be 1)

3. To reverse the Day3 transaction, user edit the PO by adding a new line with the quantity of -2 and selected the respective invoice number at the "Original Invoice number" column. The "Original Invoice Date" will auto populate. 

4. User continue the product receipt and invoice steps to complete the reversal entry.

5. User edit the same PO again by adding a new line with the quantity of 2. This is for the purpose to continue the data entry for Day3 with the correct quantity.

Question:

Are these the correct approach (Stpe#3 to #5) to make the adjustment within the same PO for reversing the wrong data entry which the Receipt and Invoice had been posted, and re-enter with the correct value?

  • Andrew T Profile Picture
    Andrew T 9 on at
    RE: Reversal of Purchase Order Invoice

    Please refer to the steps mentioned in the original post. Hope it helps to provide you better information to assist me. Thanks.

    3. To reverse the Day3 transaction, user edit the PO by adding a new line with the quantity of -2 and selected the respective invoice number at the "Original Invoice number" column. The "Original Invoice Date" will auto populate.

    4. User continue the product receipt and invoice steps to complete the reversal entry.

    5. User edit the same PO again by adding a new line with the quantity of 2. This is for the purpose to continue the data entry for Day3 with the correct quantity.

  • Ramit Paul Profile Picture
    Ramit Paul 22,300 Most Valuable Professional on at
    RE: Reversal of Purchase Order Invoice

    Hi,

    From where you reversed the PO invoice?

  • Andrew T Profile Picture
    Andrew T 9 on at
    RE: Reversal of Purchase Order Invoice

    As per Vinai's advice earlier, it is not "recommended" hence I believe it is still possible to directly reverse in PO invoice as per my scenario. I had tested it without any problem and all the GL transactions are created accordingly.

    I am seeking further advice what could be the consequences if I am doing so despite there is no impact to the inventory. Thanks.  

  • Ramit Paul Profile Picture
    Ramit Paul 22,300 Most Valuable Professional on at
    RE: Reversal of Purchase Order Invoice

    PO invoice can not be directly reversed as Vinai mentioned.

  • Andrew T Profile Picture
    Andrew T 9 on at
    RE: Reversal of Purchase Order Invoice

    The reason we are not opt for creating a return PO are:

    1. It's a service item, no impact to the inventory in term of quantity received.

    2. As this is a user error, it should be adjusted internally as issuing new PO will utilize the PO numbering series and it required workflow approval.

  • Vinai Varghese Profile Picture
    Vinai Varghese 150 on at
    RE: Reversal of Purchase Order Invoice

    It is not recommended to edit the purchase order once the status of the order is updated to invoiced.

    The best practice is to create a return PO with the required quantity.

    You can restrict this in the future by enabling "Safety level of invoiced orders" parameter under   

    Procurement and sourcing parameters --> Delivery

    to "Locked". By default, this is selected as "None".

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