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Not apply a Credit Note to a Customer invoice automatically

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Posted on by Michael agostini

We have a case where the client would not like a credit note that is created on a sales order / Customer invoice to NOT be automatically settled against that respective invoice.

The logic behind this request is that the customer who gets the credit note will more more times than not apply the credit note to a different invoice than the one it was issues against.

Hence, the client does not want to have the Credit notes applied against the invoice "automatically". Id there a parameter that will do this? I have not seen one.

Thanks Mike Agostini

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Ludwig Reinhard Microsoft Employee on at

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Hello Michael,

The standard application usually does not apply a credit note automatically.

Is that the case in your system?

If so, can you share details of your customer's module setup (parameters, posting profiles, etc.)?

Many thanks and best regards,

Ludwig

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Michael agostini on at

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HI Ludwig R

Here is my understanding of the issue point by point:

1) When a credit memo is done from a Sales order or a Return Order is completed and a credit note is issues in both cases the credit note is against a particular invoice and a particular line or lines on the invoices.

2) When the credit note is posted it will auto settle against the respective invoice. This happens out of the box. There is no specific settings to make this happen in AR parameters.

3) The issue is the client does not want the credit note to auto settle against the invoice that has been selected.

4) I have looked for a setting that will stop D365 from auto settling it but I do not see one. I think we are going to suggest the client undo the settlement each time to meet their objective.

Again the logic behind this is the client is indicating that customers will more times than not apply the credit note issued to a different invoice.

Thoughts...

Thanks Mike A

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Michal Krejza Microsoft Employee on at

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Hi Michael,

I have tested settlement between Credit not and Invoice and I was able to control automatic settlement using "Default settlement type for credit notes" parameter in Accounts receivable parameters.

None - Credit note not settled to anything - tested

Open transaction - probably oldest open transaction for customer, but I haven't tested it

Designated transactions - Credit not settled to original invoice - tested

Please check this parameter and let us know your results.

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