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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / I need help with a Pur...
Small and medium business | Business Central, N...
Suggested Answer

I need help with a Purchase Prepayment correction scenario in Business Central.

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Posted on by Sachin R 93
Hi All,
I need help with a Purchase Prepayment correction scenario in Business Central.

Scenario:

  1. I created a Purchase Order with two lines:
    • Line 1: Amount = 12,000
    • Line 2: Amount = 1,800 with 100% Prepayment
  2. I posted the Prepayment Invoice for the ₹1,800 line.
  3. I then posted the Final Purchase Invoice, where the remaining balance of ₹12,000 was invoiced after deducting the prepayment.
  4. Later, I realized that the final invoice amount was incorrect. It should have been ₹7993.54 instead of ₹12,000.
  5. To correct it, I used Create Corrective Credit Memo from the posted purchase invoice and changed the invoice amount to ₹5,806.46.
  6. However, when I tried to post the corrective credit memo, Business Central automatically added another line with:
    • Quantity = -1
    • Amount = ₹1,800
    • Posting to the Prepayment G/L Account

The problem is that the Prepayment G/L Account has Direct Posting = No, so posting fails with a "Direct Posting must be Yes" error.


I want to issue a Purchase Credit Memo to the vendor for ₹1,800, and I want that amount to be posted back to the Prepayment G/L Account so that the prepayment balance is restored.

 

 

 

 
 
 
 
 
 
 
 
Categories:
Dynamics 365 Business Central
Microsoft Dynamics NAV
I have the same question (0)
  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 18,449 Super User 2026 Season 1 on at
    Hello,
    I would not enable Direct Posting on the prepayment G/L account. The standard BC flow is to restore a prepayment using Purchase Order → Prepayment → Post Prepayment Credit Memo, not by manually posting a G/L line to the prepayment account. Since the final invoice has already been posted and the ₹1,800 prepayment was consumed, the clean approach is to reverse/correct the final purchase invoice first, then process the prepayment correction through the original purchase order and recreate the final invoice with the correct amount. The automatically copied ₹1,800 line represents the original prepayment reversal, but posting it as a normal G/L account line is why you get the Direct Posting must be Yes error.
    Regards,
    Oussama Sabbouh
  • Suggested answer
    AndrewThomas81 Profile Picture
    AndrewThomas81 2,302 on at
    I would have just deleted the prepayment line from the credit memo if you don't want to credit it.
     
    Kind Regards
     
    Andrew Thomas FCCA MCP
    YouTube - Use Business Central
    LinkedIn
     
  • Suggested answer
    Grigorios Mavrogeorgis Profile Picture
    Grigorios Mavrogeorgis 2,841 Super User 2026 Season 1 on at
    Hi,
    the Direct Posting = No on that prepayment account is by design, so don't just flip it to Yes to push the corrective credit memo through. That posts straight to the account and breaks the prepayment tracking on the order — you'll get a mess later reconciling. The extra -1 / 1,800 line is BC trying to reverse the prepayment you deducted on the final invoice, and honestly the corrective credit memo route isn't really built for the prepayment part.

    The cleaner way, from what I seen, is go back to the purchase order itself. Under the Prepayment action there is Post Prepayment Credit Memo — that reverses the prepayment through the proper engine, no Direct Posting needed on the account. One catch: to lower a line amount BC wants the Prepmt. Amt. Inv. covered first, so you might have to bump the prepayment % on the line before it lets you.
     
    Glad to help - follow up if anything is unclear.  
    ►  If this solved it, marking it verified helps others too.      
    Regards,
    Grigorios Mavrogeorgis
    Business Central Consultant & AL Developer
    Work: Gmsoft Limited
    Blog:  insidebusinesscentral
    LinkedIn: linkedin.com/in/gregorymavrogeorgis
     

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