Microsoft Dynamics AX (Archived)

Prepayment Reversal

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Posted on by Rahat Ali

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Hi All,

I have AX R3 build, I created the PO and made prepayment invoice.

I didn't settle this prepayment and also never made any receiving or invoicing on PO.

Now if I go to vendor-> Transactions then select the invoice and click on 'Reverse transaction' then got error:
The open vendor invoice is tied to a purchase order.

OR if on Vendor-> Invoice tab-> Prepayment and click on 'Reverse', then on this form didn't get any record/invoice to reverse.

Anyone has any idea that how can i reverse the prepayment rather than cancelling the PO ?

Thanks

-Rahat Ali

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There is no way to use the 'reverse' functionality when the transaction is tied to a PO but you don't have to cancel the PO either. You can do the following steps;

1. In this case there is no payment on the invoice so you can skip this step, but if there was, you would Reverse the payment.

Cash and Bank Management>Common>Checks> and select the check. On the Action Pane select Payment Reversal. Enter the information in the payment reversal form and click OK. A check reversal journal is created, review the transaction and post the journal.

2. Re-encumber the purchase order by going to Accounts Payable>Common>Purchase Orders>All Purchase Orders. Click Request Change to reopen the purchase order and edit. Add a negative line for the amount of the invoice using the same financial dimensions. Submit to workflow for approval and confirm the Purchase Order.

3. Once the purchase order has been confirmed you will need to post a negative invoice against the Purchase Order. This negative invoice will relieve the amount on the PO of the original invoice. Relieved amount value should then be zero. Re-open the PO and edit with Request Change again and add a new line for the invoice that was reversed. Submit to workflow for approval and confirm once approved. Now the PO is encumbered properly again.

4. Now you need to correct the invoice by going to Accounts Payable>Common>Vendor Invoices>Open Vendor Invoices. Select the invoice and then click 'Settle Open Transactions'. Select the negative and positive invoices and settle them against each other using 'Update'.

Reversing invoices tied to PO's is cumbersome, it is much easier to reverse transactions that are not tied to a PO. It would be a nice added feature in D365. Please let me know if you have any questions.

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ZvikaR 168 on at

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you did not specify if you are using "public sector" functionality or not, so I will assume not.

I also assume this prepayment created was never paid/settled.

If that's the case, you do not need to do the initial steps described by Kirsten (they are only relevant to public sector, when encumbrance is activated.

Start from 3 - create equal and negative prepayment from the PO, post and "invoice.

continue to step 4 to settle the negative prepayment against the PO.

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Rahat Ali 281 on at

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Thanks Kirsten

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Nicolas Mejia Galvis 40 on at

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Hello Zvika

I tried to do the same process, because i have the same issue. It's important to say that the PO comes from a fixed price project, so, when i'm trying to invoce the PO without pay the invoiced prepayment D365 shows a message, so i have to reverse the prepayment.

However, when i´m tryning to create a negative prepayment it shows me this message:

The message: "The value of the prepayment must be greater than or equal to 0.00 (COP). If there is no requirement for a prepayment, cancel the purchase order transaction for the prepayment."

Could you tech me please.

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ZvikaR 168 on at

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I suggest that you ask your question on a new posting, that way more people can see it and may answer.

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