undo item charge / negative item charge

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Posted on by Community Member

Good day

I was wondering the easy way to undo item charge on sales orders. Certainly we can do the credit memo way. Can we do a negative item charges on sales orders to reverse the previous the item charge?

My testing on the negative item charge seemed to work. But I would like to consult with experts on this ....

Your opinion is much appreciated!

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Rabin 2,976 on at

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Hi encompassconnor,

You are correct, we can either do Credit Memo for Charge item, or Return Sales order for Charged item.

Doing Negative charge item(SO) is same as doing return order(charge item) so there should not be an issue.

This is how NAV provides the flexibility in the process. But it is always better if you can use the different documents which is better identified by its naming convention. Eg: Sales order -> Sales Return order or Credit Memo.

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Indikauk 1,759 on at

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HI

Nav Has Flexibility to handle issues with more than one Single method it all depend on how you need it.

as you mention best practice will be doing it on Credit memo or Return Order but that doesn't mean that you cannot do Negative line on the sales order & reverse the Item Charges this will also work fine there is no problem to do so.

Thanks

Indika

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Alexander Ermakov 28,096 on at

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It depends what item charges you talk about. If you mean you had allocated Purchase Order Line as item charge to a Sales Order, this means you had increased the COGS "backwards". That is, the written COGS has been increased, the negative item entry will be increased; by running Adjust Cost - Item Entries batch job, NAV will try to increase the amount for corresponding initial positive item entry. However this would not affect your receivables, as the sales price in sales order will be the same. Thus, posting just the financial credit memo would not help, it would not affect the COGS. Therefore, posting a credit memo with negative item charge can adjust your entry, or playing with item journals.

For other cases, I agree with previous comments of community members.

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