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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Why does canceling a P...
Supply chain | Supply Chain Management, Commerce
Answered

Why does canceling a Product receipt update the inventory transaction financially?

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Posted on by Marco M 8
As we know, after a purchase order is received (the Product receipt is posted), the transaction status is /Received/, with no financial date or financial voucher generated. Only after the order is invoiced, the transaction status is /Purchased/ with a financial date. But I recently found out that the act of canceling a Product receipt, which seems purely /physical/, the inventory transactions status are /Purchased/ and /Sold/; Why are they this way, but not /Received/ and /Deducted/?
 
  • Verified answer
    Mohamed GRAIB Profile Picture
    Mohamed GRAIB 2,494 Super User 2025 Season 1 on at
    Why does canceling a Product receipt update the inventory transaction financially?
    Hi Macro, 
    You have the finacial transactions for some reasons : 
    - To provide an audit trail because any changes to inventory and related financial transactions should be properly documented
    - a product receipt may lead to changes in the cost of items in inventory, which can affect the valuation of the inventory and, subsequently, financial statements
     
    You can also find all details in this link : 
  • Guy Terry Profile Picture
    Guy Terry 28,691 Super User 2025 Season 1 on at
    Why does canceling a Product receipt update the inventory transaction financially?
    The two transactions you highlighted are related to the original receipt, and the reversal of that receipt. The reason they are Financially updated is because those transactions are complete. There is no other step to be taken in the whole receipt/cancellation process that has been performed.
     
    The On order transaction remains the active transaction for this PO Line. Either you will receive it again, and it will update to Received, or you will cancel the order, and this transaction will be removed.
  • Suggested answer
    Ramit Paul Profile Picture
    Ramit Paul 22,387 Most Valuable Professional on at
    Why does canceling a Product receipt update the inventory transaction financially?
    Hi,
     
    The screen shot is for a sales order Packing slip cancel I guess, however your observation is correct, for PR/Packing slip cancel, it always shows Purchase and then Sold.
     
    I can understand the point however this is what it is.
     

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