Posting a supplier invoice against a prepayment PO

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Posted on by UAli

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Hi,

I am getting the below error message when posting an invoice against a PO which had a prepayment invoice posted against it in the prior financial year. The invoice is dated in the prior year but the posting is in the current year.

It is as if the prepayment is being reversed out in the prior financial year as the posting date, whereas i would expect for the prepayment reversal to happen in the current financial year (regardless of the fact that the prepayment invoice was posted in the prior year.

Can you please advice on how to resolve this? I even tried to post the invoice with a 1st of April date (current FY) but it still gives the same error. Surely other users will have prepayment invoices posted in prior financial years and with the actual invoice arriving in future years ? I would expect that the prior financial year periods need to be opened to post this.. seems wrong..

Error:

Posting
Invoice: RM768165 Reversal denied. The transaction is in a previous accounting year.

Screenshot below:

Thanks

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Dynamics 365 Finance

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Raj Borad 1,578 on at

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Hi @UAli,

This issue occurs because the system attempts to reverse the prepayment in the same fiscal year in which it was originally posted. Since the prepayment was posted in the previous accounting year, and that year is closed, the system denies reversal, triggering the error. Even if you set the invoice date in the current year, the reversal still tries to respect original posting logic.

To resolve this, you can try below options:

- Temporarily reopen the prior fiscal year to allow the reversal.
- Manually reverse the prepayment via a journal in the current year and skip automatic reversal.

Thanks.

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UAli 177 on at

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Thanks Raj, how can i remove the automatic prepayment reversal option. I would prefer this than having to open up prior financial periods.

thanks

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