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Reason codes on customer transactions

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Posted on by IA-22011336-0

Hi,

We're using D365FO, version 10.0.47.

We would like to use reason codes for credit notes created through Free text invoices. We can enter information in the reason code field, but this information is not added to the invoice transaction or customer transaction and we cannot extract for reporting purposes.

Please assist me in how to use the reason code fields for customers.

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Dynamics 365 Finance

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Rashid.Ali 472 on at

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Hi @IA-22011336-0,

In standard D365FO (10.0.47), the Reason Code on Free Text Invoice credit notes is informational only and is not stored in CustTrans/CustInvoiceTrans for reporting purposes. This is standard system behavior.

To use it in reports, a small customization is required to store the value in a transaction table or custom field during posting.

Hope it will help you.

Regards,

Rashid Ali

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Abhilash Warrier 8,631 Super User 2026 Season 1 on at

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This is the standard functionality and expected behavior in D365 F&O.
Could you please share the detailed steps or a few screenshots for this scenario?
Additionally, could you confirm your approach:

Are you performing a transaction reversal, or

Are you creating the credit note manually by posting a Free Text Invoice?

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IA-22011336-0 69 on at

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Hi,

Thank you for your feedback. We are creating the credit notes manually in the system.

If we create a report outside of the system, would I be able to collect the information added to the freetext invoice header without any customizations?

Regards,

Ingunn

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Abhilash Warrier 8,631 Super User 2026 Season 1 on at

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Workarounds for Reason Codes in Free Text Invoices
1. Financial Dimensions
-> Create a dimension like “CreditNoteReason”

-> Require users to populate it for credit notes
2. Invoice Header / Footer Text - Enter reason in free text fields
3. Custom Field Extension - Add a Reason Code field to invoice header/line tables*** Development Required

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IA-22011336-0 69 on at

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Thank you Abhilash Warrier for your input.

We will try to find the best solution.

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Arvind Bharti 977 Super User 2026 Season 1 on at

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Hi,

Did you also tried using the default description where lets say you can add this reason code in customer transaction description?

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Adis 6,814 Super User 2026 Season 1 on at

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Hi,

I would advise to look into the financial tags, if you havent already.

Financial tags - Finance | Dynamics 365 | Microsoft Learn

Hylke offers lots of content around fin. tags.

https://www.linkedin.com/posts/hylkebritstra_webinar-over-financial-tags-door-hylke-britstra-activity-7302361366386888705-k-VL?utm_source=share&utm_medium=member_desktop&rcm=ACoAAB_tRDkBb5UzYOu5Xjhqpe93l15hZOFZenw

In standard you can assign a logic, f.e. to write the sales order number in the financial tag of the voucher. I am not sure if it is possible to use the reason code to write into the financial tag of a voucher, however, it seems for me a good approach to customize something in this area.

Keep in mind that MS is adding more and more places where fin. tags can be used, so maybe your requirement will be available in the future. That being said, I would advice also to customize a parameter, that allows you to switch the customization on and off. So, once ,or if, the feature becomes available you can switch to the standard using the standard code.

Kind regards, Adis

If this helped, please mark it as "Verified" for others facing the same issue

Keep in mind that it is possible to mark more than one answer as verified

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Giorgio Bonacorsi 3,439 on at

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Hello,

The reason code is not a bad idea, but you would need to check each voucher individually to see the reason.
It cannot be added to the overview form without customization.

As mentioned by the other experts, you can use Financial Tags (or Dimensions) as an alternative.
For your case, I suggest using Financial Tags, they can be easily corrected if you select the wrong reason, and they do not impact the trial balance.

Thank you,
Giorgio

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Alireza Eshaghzadeh 15,211 Super User 2026 Season 1 on at

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Hi,

Reason codes can be defined on both the FTI header and line level, and there is a standard flow available after posting on customer transactions.

Below is a simple example of a credit note for an FTI document using a reason code on the header level.

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