financial credit note

(4) Share

Report

Posted on by IA-15041016-0

235

Hi all ,

I want to create a credit note on a purchase invoice, so I only need to change the price without affecting the stock.( for example , the invoice amount is 1000$ and i want to create a credit note with -500$):

1) If I use the credit note process from the purchase order, an error message appears in the line saying that the quantity and the net amount must have the same sign. So, I wasn’t able to keep the same quantity and change only the unit price with a negative sign.

2) And if I use Invoice > Credit Invoicing and select the invoice, nothing gets generated.

What should I do?

Categories:

Dynamics 365 Finance

I have the same question (0)

All responses (7)

Answers (3)

Verified answer

CA Neeraj Kumar 5,099 Super User 2026 Season 1 on at

Like (2)

Report
Copy link

Link copied!

Hi,

In case you want to prepare credit note only for affecting value not quantity (Stock), below are the approaches:

1) Create Vendor Invoice journal and put the amount in debit and post the invoice journal. While doing so, if it is India-localization, you can select the original transaction reference in the tax document as well.

For legal entity other than India, you can use Credit Invoicing option to put original invoice reference.

2) Create a service item or use procurement category to book the negative amount for vendor through Pending vendor invoice page (without PO).

3) Credit Invoicing option is available in the system for linking of original transaction with credit note, it doesn't post any transactions by itself.

If you require further inputs on doing above steps, please let us know.

Regards,

Neeraj Kumar

If this helped, please mark it as "Verified" for others facing the same issue Keep in mind that it is possible to mark more than one answer as verified

Was this reply helpful? Yes No
IA-15041016-0 235 on at

Like (3)

Report
Copy link

Link copied!

Thanks for you reply @CA Neeraj Kumar

So credit invoicing is just to link the original invoice, meaning I have to manually enter the credit note by debiting the vendor account, and then link it to the original invoice?

Was this reply helpful? Yes No
Verified answer

CA Neeraj Kumar 5,099 Super User 2026 Season 1 on at

Like (2)

Report
Copy link

Link copied!

Hi,

Yes credit invoicing is for reference purpose only, you need to debit vendor account manually.

You can refer the standard MS article as well :

https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/gbl-original-invoice-numbers-credit-notes-ap

Regards,

Neeraj kumar

If this helped, please mark it as "Verified" for others facing the same issue Keep in mind that it is possible to mark more than one answer as verified

Was this reply helpful? Yes No
Suggested answer

BillurSamdancioglu 20,713 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

You can not achieve this through PO. You need to do workarounds like using journals and then changing the cost of the item through inventory closure etc.Bur these ways are a bit complex.

Was this reply helpful? Yes No
Verified answer

Yng Lih 1,612 Super User 2026 Season 1 on at

Like (3)

Report
Copy link

Link copied!

Hi,

In D365 Finance, handling a credit note that only adjusts the price (not the quantity or stock) on a purchase invoice is not supported through the standard purchase order credit note.
You can manually create a Vendor invoice journal line with a negative amount for the price, referencing the original invoice/document. This way, inventory is not affected, and only the financial correction is posted.

If this information was helpful, kindly mark it as 'Verified'. Thank you. :)

Was this reply helpful? Yes No
Suggested answer

Syed Haris Shah 1,519 Super User 2026 Season 1 on at

Like (0)

Report
Copy link

Link copied!

Hi,

I would recommend that if the invoice is not yet settled and the inventory has not been utilized, the best approach is to completely reverse the Purchase Order and then create a new PO with the correct unit price.

This ensures that the Purchase Order history reflects the correct unit price and quantity. Otherwise, the approaches mentioned by other experts in comments are the best options to follow.

If you find this answer helpful, please consider verifying the answer. 👍

Regards,
Syed Haris Shah

Was this reply helpful? Yes No
CA Neeraj Kumar 5,099 Super User 2026 Season 1 on at

Like (2)

Report
Copy link

Link copied!

Hi @Syed Haris Shah,

I’m not fully clear on what is meant by “reverse the complete purchase order” in this context.

Since the invoicing is already done and the intention is that the quantity should remain unaffected by the credit note, I don’t see why we would need to reverse the entire PO.

Normally, reversing a PO is used when we want to cancel the entire purchase process, including receipts and invoices [at present through credit note with same details as of original PO].

Regards,
Neeraj Kumar

1 people found this reply helpful.

Was this reply helpful? Yes No