Changing Standard Cost on Sales Credit Memo

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Posted on by rcboiler

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When creating a credit memo from a sales invoice, one would think that the unit cost would match the cost that was on the original sales invoice.

However, we have recently noticed that when using standard cost that the item on the credit memo displays with the current standard cost (not the cost from the original sales invoice). Furthermore, you cannot change the unit cost (get a validation error saying you cannot change the cost due to the fact the item is set up with standard cost).

Is this a recent change?

Is the the expected functionality?

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Dynamics 365 Business Central

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Guy McKenzie 1,340 on at

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That would be expected behaviour.

When the item is returned into stock, it will have a value of the current standard cost on inventory.

I can see how it may seem a bit weird but it is correct. Your gain in inventory value is reflected in the COGS account entries.

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Dallefeld 225 User Group Leader on at

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You could try using the Applies to Item Entry on the line(s) of your credit memo. Pick the original item ledger entries and see if the cost changes (make sure that you run adjust cost - item entries)

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YUN ZHU 97,970 Super User 2026 Season 1 on at

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Hi, Hi, was this Credit Memo created manually?

I think you can use Create Corrective Credit Memo first.

Or using Copy Document features (Disable Recalculate Lines)

PS: Just adding to Kim's method, you can enable Exact Cost Reversing Mandatory in Sales & Receivales Setup page to force the user to select Item Entry on the line(s) every time.

Hope this info helps.

Thanks.

ZHU

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Community Member on at

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Hello,

On the Sales & Receivable Setup page, check the field 'Exact Cost Reversing Mandatory'. This will mandate that when an Item is returned it will use the cost from the document in the Credit Memo/Return Order.

Hope this helps.

Thanks,

Steve

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rcboiler 1,236 on at

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Thanks to everyone for their replies. It would seem this is expected behavior as all of your solutions resulted in the standard cost pulling from its current value and not from the value on the original invoice. And again, we could not manually change the cost on the CM to reflect the amount on the original invoice.

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