Purchase Credit Memo with zero inventory

Hi Dug,

Good Day,

  • Our logistics created a purchase order.

Lines: Item001 QTY: 1 Cost: 100

The PO document was posted as receive and invoice.

  • Then, someone from our Sales department, created a Sales Order.

Lines: Item001 QTY: 1 Unit Price: 200

The SO document was posted as ship and invoice.

  • But when I notice the invoice, the encoded cost from the item was wrong, from 100 it should be 95.
  • Now to reverse the transaction, I’m creating a Purchase credit memo using ‘get posted lines to reverse function’, but when i’m posting the document there is an error prompting [attached is the error].

Please help me with this.

Thanks

2605.NAV Error.png

Welcome to forum!

Do NOT worry about costing data in sales documents - they are only informative!

When creating SO/SI, NAV fetches cost from Item Card to speed up the operations, and that data is NOT accurate. Moreover, in doc tables that initial cost is NEVER updated.

Later, when ACIE (and Post cost to GL) is run, correct COGS is calculated and posted to Item Ledger and GL Therefore. never use doc tables for reporting, especially COGS reporting, use Ledgers instead.

More on this you can find by searching the forum on COGS, ACIE and like.

Since the purchase is invoiced you need to correct this by revaluing the transaction. Modris response addresses a scenario where only receipt is posted and not yet invoiced. The messeage you got is probably because you have checkmarked “Exact Cost Reversing Mandatory” in Purchases & Payables Setup. Then you must apply the Purchase Credit Memo Line to the initial transaction. Make sure the column “Apply.-to Item Entry” is visible, then lookup and apply to the initial transaction to proceed. But in this case you should rather revalue the initial transaction through Revaluation Journal.