Microsoft Dynamics 365 Business Central Process Purchase Returns or Cancellations

How to Process Purchase Returns or Cancellations in Business Central

If you want to return items to your vendor or cancel services that you have purchased, then you can create and post a purchase credit memo that specifies the requested change with regard to the original purchase invoice. To include the correct purchase invoice information, you can create the purchase credit memo directly from the posted purchase invoice or you can create a new purchase credit memo with copied invoice information.

If you need more control of the purchase return process, such as warehouse documents for the item handling or better overview when shipping back items from multiple purchase documents with one purchase return, then you can create purchase return orders. A purchase return order automatically issues the related purchase credit memo.

Reverse a Posted Purchase Invoice with Purchase Credit Memo

This is how to process a return or cancelation:

1. On the Posted Purchase Invoices page, select the posted purchase invoice that you want to reverse, and then choose the Create Corrective Cr/Adj.
2. Edit information on the lines according to the agreement, such as the number of items returned or the amount to be reimbursement.
3. Click the Apply Entries action.
4. On the Apply Vendor Entries page, select the line with the posted purchase document that you want to apply the purchase credit memo to, and then choose the Applies-to ID action. The number of the purchase credit memo is inserted in Applies-to ID.
5. In the Amount to Apply field, enter the amount that you want to apply if smaller than the original amount.
6. Click the OK button. When you post the purchase credit memo, it will be applied to the specified posted purchase documents. Proceed to post the purchase credit memo.