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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Purchase credit memo w...
Small and medium business | Business Central, N...
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Purchase credit memo with discount

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Posted on by MaxwellDziya 40
Hello Community

I need your assistance on the posting entries created when we post Purchase credit memo with discount. In my setup i have Purchase account same as Direct cost acccount in essense they zero-ize, when we post Purchase Invoice it then posts to inventory account, payables and disccount received correctly. However when we reverse (purchase credit-memo) the entries created are somehow wrong, it posts back into that account of Purchase & Direct costs, hence i have balance in that account.

 

How do we get it correct?
 

  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 7,440 Super User 2024 Season 2 on at
    Purchase credit memo with discount
    you could testing in a standard cronus company how such posting is being handled and troubleshoot your setting to find where is wrong.  
     

    When posting a purchase credit memo, especially with discounts, the typical expected ledger entries should be:

    • Debit the Accounts Payable (vendor balance), reducing the liability since you are returning items or getting a credit from the vendor.
    • Credit the Inventory account for the cost of the items being returned, to reduce the asset value.
    • Credit the Purchase (Direct Cost) account if it's been debited upon the initial invoice posting. This would usually zero out the cost posted from the initial invoice.
    • Debit the Discount Received account to reverse the discount received on the purchase invoice.
  • S_black Profile Picture
    S_black 32 on at
    Purchase credit memo with discount
    Try having your discount received account to be the same as purchases account.
     
    Should resolve the issue

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