Debit Note & Credit Note

Hi All

How can you set up Debit note (AP,vendor) or Credit note (AR, Customer) in Dynamics AX 2009



For AP it can be done in Invoice Journal, for AR Credit note can be done in Free Text Invoicing.

Thanks Brian…

could you please explain or give me set up steps?


Hi Girish,

you can create credit note in Sales Order>function>create credit note

Hai haydee,

i hope the same option is ther in the PO also.

purchase order–> Functions–>Credit Note.

could u please exaplain me the diff between this two credit notes

Hi Naresh,

Credit note reduces Accounts Receivable from a customer (for example,the customer return damaged goods). A debit note is a transaction that reduces Accounts Payable to a vendor (for example, you send damaged goods).

Hi All

Ok… i got ur points… The term “Credit Note” is same in both AP and AR. After selecting credit note what would be the next step… should go ahead & post the invoice again or what?

In my case suppose i want to debit some amount to vendor due to goods received in damaged condition & have already posted invoice… There are two questions in my mind

  1. How can post credit note to vendor after Purchase oder status is “Invoiced”?

  2. After Selecting Credit note option, what is next step?

  3. While generating payment how can I select that particular credit note & it should be appear in payment advice.

Thanks again & waiting your positive reply


During the process of creation of credit note you will be able to see the list of invoices for that vendor - select the invoice against which you are going to raise a credit note and select the items and the quantities. Invoice it and make a settlement during the payment.

Thanks Kranti

where can I see generated credit note? As i can’t see in transaction window…


Thanks Kranti

Where can see generated credit note? as I can’t see in transaction window or can’t select while generating payments


One more point…

Now I can generate credit note… but while doing this I have to enter different Invoice no…

& generating payment system should show credit note as a seperate line

Please reply



Yes that is the credit note number, yes it will show the credit as a separate line in the payment system, depending upon how you process the payment and whether you have gone through open transaction editing and already applied it to the invoice,.

Hi everyone,

I want to create a Credit Note through .NET code, could anyone help me understanding which Axapta Objects are required?

Thank you,

Hi Adam

I am confused, Could you please give me steps to create credit note in AP.

Thanks in advance


You can create a debit or credit memo in a number of ways Are you referring to setting up what prints out - or the method of creating these types of transactions in AX 2009?



Hi Girish,

Let’s take case of vendor transactions. There can be two cases:

  1. You want to return a posted PO with exact cost that was used in purchase

  2. You are short-paying vendor for some defects but there is no return of inventory.

Credit note is used for case 1. In business scenario credit note is something which we give to customers if we are not paying him cash when he returns good. If we return to vendor then we call it as Debit note. But in AX you have credit note functionality. To create credit note, create a new PO, select vendor and the in Purchase tab, there is option for creating credit note. System will open another form where you can select vendor invoice and line which needs to be reversed. Notice that Mark is automatically checked. Mark ensures that the item will be returned at exact cost otherwise system will use running average cost. These is how we create credit note for AP.

Well my personal opinion is that credit note functionality is not that good in AX. If you see NAV, we have separate form for credit note/credit memo and separate number sequence and reporting. This is missing in standard AX.

In case 2 when there is no inventory return, you can use journals like invoice journal or general journal. You can post vendor debit entry and you can offset it with future transactions.



When we are creating the PO, ur vendor get credit and inventory get debit. Consider if you return the item, here we have to reverse the transaction to nullify the financial impact (Debit the vendor and credit the inventory). For doing so select the vendor against whom you have to create the purchase return order, and in the purchase type select “return” and enter the RMA number and click OK. Now go in Functions> Credit note here you can see all the PO created against that vendor, select the PO and select the lines which you want to reverse click OK. Then proceed with the as usual PO invoicing.

Hi all,

How to print credit and debit amount separately in ax 2009 reports,please reply me


Arun joseph