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Sales credit memo - Inventory value and quantity in inventory

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Posted on by MS-30040609-0

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Hi all,

If I have a customer who received a defective item, we want the customer to keep the item but receive a credit. When creating the credit, we do NOT want to post the item back into inventory, and we don't want it to affect the inventory value. We also don't want to use G/L accounts on the credit.
How can we resolve this in Business Central?

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Dynamics 365 Business Central

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Vahid Ghafarpour 12,258 on at

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Item charges could help you

https://community.dynamics.com/forums/thread/details/?threadid=86347b95-99e5-4038-abe1-7d2b47b40d0a

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Vahid Ghafarpour 12,258 on at

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or may be this

https://www.cloudfronts.com/blog/d365-business-central/managing-credits-without-returning-items-to-inventory-in-d365-business-central/

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PRao 458 on at

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Item charge is the best option. Follow the below steps
1. Created item charge with mapping of Same Gen Prod Posting group as specified in Item Card.
2. Open Sales Credit memo with the same customer and select type Charge( Item) and select the created Item Charge no.

3. Specify the quantity 1 and the amount which you want to settle

4. Click on Item charge Assignment and then select Get Shipment line then select the appropriate shipment line

6. Specify the quantity 1 and close the window.

7. Post the Sales credit memo and check the value.

I hope you will get the solution. From my point of view this is right approach.

Let see what other experts sharing their thoughts.

Thanks,
PRao

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Valentin Castravet 32,664 Super User 2026 Season 1 on at

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You can either use a credit memo with a GL account, or a credit memo with an item charge. The benefit of doing the latter is that your inventory subledger will contain the correct sales amounts. This is important if you do any reporting off of the inventory subledger. I wrote a blog post about using this method here - How to Credit an Item Without Putting it Back in Inventory - Dynamics 365 Business Central Insights

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

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Yi Yong 2,704 Super User 2026 Season 1 on at

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Hello,

You can use 'Return Reason' with 'Inventory Value Zero' feature if it is necessary to use back the Item No.

Though it will increase the quantity in inventory level, you can create a RETURN location and do a negative adjustment as part of the month-end closing.

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YUN ZHU 100,212 Super User 2026 Season 1 on at

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It looks like you just need to make a bank transfer in General Journals.

Thanks

ZHU

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