Resolving Sales Credit Note Issues in Business Central

Resolving Sales Credit Note Issues in Business Central

Introduction
When processing sales credit notes in Microsoft Dynamics 365 Business Central, encountering error messages can be frustrating. A common issue is receiving an error related to 'Appl.-from Item Entry' when creating a credit note with new lot numbers. This blog post offers advice on how to address such errors for a smoother Business Central experience.

Understanding the Issue
User attempted to create a Sales Credit Note for two items using new lot numbers, not linked to a previous invoice. Instead of proceeding smoothly, they received this error message:

"Appl.-from Item Entry must have a value in Reservation Entry: Entry No.=, Positive=Yes. It cannot be zero or empty."

Despite not using reservations, a reservation entry with the status 'PROSPECT' was found. This indicates that the system is expecting a link to an existing item entry for the transaction.

Possible Causes and Solutions

1. Exact Cost Reversing Mandatory Setting
   If the 'Exact Cost Reversing Mandatory' setting is enabled, Business Central requires that any return transaction be posted against an existing item entry. This ensures accurate cost tracking for returned items. To resolve this:

   • Adjust the Setting: Consider if this setting is necessary for your operation. If not, disabling it may resolve the issue.
   • Correct Item Entry: Ensure that the 'Appl.-from Item Entry' field on the credit memo references an existing item ledger entry.

2. Handling Reservation Entries
   Even though reservations are not actively used, Business Central might still create reservation entries under certain conditions. To address this:

   • Clear the Reservation Entry: Go to the item ledger entries and remove any unwanted reservation entries, particularly those with the status 'PROSPECT'.
   • Adjust Inventory Setup: Review your inventory setup to ensure that automatic reservations are not being created inadvertently.

3. Sales Credit Note Process
   When issuing a credit note without linking to a specific invoice, it's crucial to ensure that the system isn't expecting a connection to a particular lot or serial number. To manage this:

   • Use the Correct Document Type: Instead of a credit memo, consider using an "Item Journal" for adjusting inventory if there is no related sales document.
   • Review Lot Number Handling: Ensure that the new lot numbers used in the credit note are not causing conflicts with the system's expectation for item tracking.