Purchase invoice credit memo issue !

I am new to NAV and need assistance in following issues below in terms of processes to ensure right methodology and entries are posted correctly.

How do i go about…!

  1. Where a credit note for an item from supplier is received with item on the supplier invoice but the item is not on the purchase order and no purchase credit memo as that stock was never received ?

  2. Where supplier invoice has been received for goods say quantity 100 value £1 and booked in at that price. Later received a credit note stated the value was wrong and should have been 80p.(I cannot use purchase return order as that will take stock out) how do i correct the value of stock without affecting the quantity?


Hi Accountant,
Welcome to DUG/NAV [:)]!

So both your examples are because your vendor didn’t know how to use their ERP system. Happy that you would like to do it better… ?

The “correct” answer would be to tell your vendor to create a correct invoice in the first place, and if that is not possible, then always a credit memo, plus a new invoice for the full amount.
That is also the best practice way to handle if your company makes a mistake. A credit memo for the full amount, and then a new invoice with the correct price.

But I am also well aware, that it’s very common that it’s handled this way.

  1. If they will not send you a correct invoice, then it depend if the item is in your inventory or not. If it is, then I would just use the “correct” item no. in your system. If its not, then use a G/L account number here.

  2. As you know already, then the best way is to credit the full amount/quantity and add it again with a new invoice. Even if you have already “used” the original inventory, then you can still adjust it, when you apply both the invoice and credit memo. And then you better learn to use the “Application Worksheet”. Because here you can “unapply” and “reapply” so that your item cost will stay correct. You need to unapply the original receipt with the “return” from the credit memo, and then reapply the new invoice to the used inventory.

I hope it helps a little.

I guess that “Item Charges” is what you have to use.
A (purchase) Credit Memo containing Type=“Charge (Item)” that are pointing at the original purchase (receipt) will decrease the purchase.

Hi Anfinnur,
Good to see that you’re still onboard here on DUG! :slight_smile:

Item Charges is a good way to do it at least for example 2. And actually much easier than using the application worksheet Not been using that much myself. But maybe that’s because I’m only contacted when it already went wrong… Maybe I should read up upon that myself, so that I can show my customers how to use it a bit better. [:)]

But still the Application Worksheet is something all functional NAV consultants and users should be aware of. Especially if they use lot no.s…