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Reverse an intercompany customer invoice in D365 F&O project management and accounting

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Posted on by Andreea Matei

Hello,

Do you know if it is possible to reverse/cancel - correct invoice (intercompany) ?

I get this error message : "Cannot correct a project intercompany free text invoice which has posted pending vendor invoice in the borrowing legal entity."

Do you have any ideas on a solution for this?

Thanks!

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Charlotte X Microsoft Employee on at

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Hi Andreea,

It has to be done manually. Create lines in original with negative qty and then try to process.

Please refer to this old thread:

(+) How to reverse intercompany & intercompany and direct delivery PO, SO - Dynamics 365 Finance Forum Community Forum

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Charlotte X Microsoft Employee on at

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Hi,

Is your issue solved?

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Andreea Matei 37 on at

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Hello Charlotte,

This did not solved my issue unfortunately. It is not related to a SO or PO.

I want to reverse/cancel - correct invoice for an intercompany invoice, and get the error message : "Cannot correct a project intercompany free text invoice which has posted pending vendor invoice in the borrowing legal entity."

Regards,

Andreea

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Frank Hamelly | MVP... 46,631 Moderator on at

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The system will not reverse any type of intercompany transaction, even an intercompany General Ledger journal. There's a parameter that allows correction of a Free text invoice. Check to see that this parameter is enabled in your system. If not. you'll need a technical resource to enable it. However, I'm not sure what impact on the project correcting the invoice from Accounts Receivable will have. You might need to make a separate adjustment to the project also.

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Andreea Matei 37 on at

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Hello, we already have this parameter enabled, and I see the option correct invoice in the Intercompany Project Invoice (Project) and in the All Free Text Invoices (AR), however, when trying I get this error message I get this error message : "Cannot correct a project intercompany free text invoice which has posted pending vendor invoice in the borrowing legal entity."

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Adis 6,784 Super User 2026 Season 1 on at

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Hi,

The error you receive is because in the borrowing legal company the pending vendor invoice is already posted. That means, you can only cancel a intercompany invoice if the pending vendor invoice is not posted yet.

This works by design, because the system cancels "only" the intercompany customer invoice, but not the received incoming invoices in the borrowing company. If the system would let you do that, you would have a mismatch between your revenue in one company and your costs in the other, borrowing, company.

Kind regards, Adis

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