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Charge item in Purchase credit memo

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Posted on by Raghav3022

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Hi,

Can we use charge item to reduce the value of my inventory while issuing a credit note to vendor ? When we tried, it says " Related item ledger entries doesn't exist ".

I need to issue a credit memo to my vendor for X amount for quality related issues.

We do not want to reduce the quantity of the item but we need to reduce the value of the inventory. How do we do this, Please suggest.

We follow consumption based accounting, so we do not want to select direct GL account in Purchase credit memo since our Profit and loss may not be accurate in this case.

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Dynamics 365 Business Central

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Holly Huffman 6,530 Super User 2025 Season 2 on at

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Hi there & good morning, evening, or afternoon :) depending on your location!

Item Charges are designed to adjust the value of inventory without impacting quantity.

The error "Related item ledger entries doesn't exist" suggests your item charge is not properly linked to the original purchase receipt or item ledger entries.

When creating the purchase credit memo, ensure you have the item charge assigned to the original purchase receipt.

This links the adjustment to the correct item ledger entries

Open the purchase credit memo

Add a line for the item charge

Use the "Get Receipt Lines" or "Get Posted Document Lines to Reverse"

Assign the item charge to the relevant receipt line

Post the credit memo - this should reduce the inventory value without affecting quantitiy

After posting, verify the impact on both inventory and financials to ensure it is how desired

Hope this helps some!

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Raghav3022 214 on at

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Thank You Holly for your suggestion. Will check it out

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Gerardo Rentería Ga... 25,157 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

1.4.39 Customers/ POSTING CREDIT MEMO USING ITEM CHARGES - Dynamics Business Central NAV

4.3.13 Purchase Process/ PURCHASE CREDIT MEMO WITH ITEMS CHARGE - Dynamics Business Central NAV

Best Regards
Gerardo

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Ramesh Kumar 7,527 Super User 2025 Season 2 on at

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I believe you need to assign the charge item and adjust the allocations to the purchase credit memo receipt line.

Thanks,

Ramesh

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YUN ZHU 95,329 Super User 2025 Season 2 on at

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Generally, credit memo is not used to reduce the value of an item. Item Revaluation Journal is used.

More details: https://learn.microsoft.com/en-us/dynamics365/business-central/inventory-how-revalue-inventory?wt.mc_id=DX-MVP-5004336

Hope this helps.

Thanks.

ZHU

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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You can use an item charge on the credit memo to reduce the value of inventory, if the vendor is giving you a credit. You would apply the item charge to the an item receipt. What are you applying it to?

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

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Hope this helps as wellhttps://learn.microsoft.com/en-us/dynamics365/business-central/payables-how-assign-item-charges

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Vahid Ghafarpour 12,090 Super User 2025 Season 2 on at

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