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Behavior of Purchase Orders after Corrective Credit Memo in Business Central

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Posted on by CU18090321-0

Below is the step for the scenario

Purchase Order created → contains multiple items.
Update Qty. to Receive → only for one item, and post Receive and Invoice. Now the PO is partially received & invoiced.
Go to Posted Purchase Invoice → create a Corrective Credit Memo (adjustment note) for the received item, reversing the amount. This cancels the financial posting for that item
when Check the original Purchase Order → see that the Qty. to Receive for that item is restored to the same amount as before. Is this the normal behavior of BC ?

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Dynamics 365 Business Central

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Rishabh Kanaskar 6,219 Super User 2026 Season 1 on at

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Hi,

Yes, this is standard behavior in Business Central.

> When you create a corrective credit memo from a posted purchase invoice, the system reverses the receipt and invoice, restoring the Qty. to Receive on the original purchase order.

> This allows the item to be received/invoiced again if needed. It is by design for handling corrections and ensuring the purchase order reflects the open quantity after reversal.

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Rishabh

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Jeffrey Bulanadi 9,112 Super User 2026 Season 1 on at

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Hi,

The behavior you’re seeing is expected in BC when using the Corrective Credit Memo function from a posted purchase invoice.

Here’s what’s happening under the hood:

When you post a Corrective Credit Memo, BC reverses both the financial and inventory impact of the original invoice line. This includes restoring the Qty. to Receive on the original Purchase Order.

The system treats the reversal as if the item was never received, which is why the PO line reopens and the quantity becomes receivable again.

This behavior ensures that the PO remains accurate and actionable. If the item was returned or rejected, the PO can now be used to receive a replacement or reprocess the transaction.

If you don’t want the PO to reopen, you’ll need to manually close the line or use a Return Order instead of a Corrective Credit Memo. Return Orders allow you to reverse the financials without reopening the original PO.

This is standard behavior and aligns with BC’s design for maintaining audit integrity and inventory traceability.

Helpful Reference
Return Orders vs Credit Memos – Dynamics Community thread

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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Sumit Singh 11,757 Super User 2026 Season 1 on at

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Hi,

Yes, this is normal behavior in Business Central.
When you create a Corrective Credit Memo (or use the Correct or Cancel actions) from a Posted Purchase Invoice, the system reverses the financial and inventory entries for the invoiced quantity. This effectively cancels the original posting and restores the related purchase order lines to their previous state, including Qty. to Receive.
This design ensures that the purchase order reflects the fact that the goods or services are no longer considered received/invoiced after the reversal, allowing you to reprocess them if needed.[1][2]
Key Points:

The Correct or Cancel actions automatically create and post a Purchase Credit Memo that reverses the original invoice entries.

After posting the credit memo, the purchase order line is reopened, and the Qty. to Receive is restored.

This behavior applies even for partial receipts/invoices.

Official Documentation:

Correct or Cancel Unpaid Purchase Invoices

Process Purchase Returns or Cancellations

References
[1] Amend or cancel unpaid purchase invoices - Business Central
[2] Process returns or cancellations - Business Central
Please mark “Verified” if it helps.

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Suresh Kulla 50,269 Super User 2026 Season 1 on at

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Yes, correction means you are trying to undo the received/invoice you have done, so it will update the quantity so that you can receive and invoice again. If you don't want that, then you need to create a credit memo directly without executing a correction.

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Valentin Castravet 32,208 Super User 2026 Season 1 on at

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Yes, that is standard behavior.

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

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YUN ZHU 99,086 Super User 2026 Season 1 on at

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Yes, this is standard behavior, you can click on the field below and see that the quantity has been reversed.

More details: Navigate easier between order, receipt, and invoice documents (Drill down on Qty. Shipped and Qty. Invoice)

https://yzhums.com/42941/

Thanks.

ZHU

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Nimsara Jayathilaka. 4,950 Super User 2026 Season 1 on at

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Hi

Yes, this is normal behavior in Business Central. Here’s a summary explanation:

You partially receive and invoice a purchase order (PO) line.

When you post a Corrective Credit Memo for that line, it reverses the financial posting (GL impact) of the invoice.

Business Central automatically restores the “Qty. to Receive” on the original PO line because the system treats the credit memo as if the item was never received from a financial perspective.

✅ This allows you to re-receive or re-invoice the item if needed.

Thanks

Nimsara

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