If the purchased item needs to be returned to vendor against the same purchase order after it has been invoiced, what is the best way to handle this.
So far I have tried with menu item Functions > Create credit note from the Purchase order form and tried adding another line of the same item to be returned and thus far I have been unsuccessful.
Is there specific setup in parameter that I need to check? From the business perspective, I know this functionality is basic and the AX has to support this. May be my system is not set up correctly. Can someone suggest me where I need to look?
The way the software supports this is to allow you to create a new purchase order of the type return order. This is the way MS really want you to do this.
However you can create negative lines to keep it on the same purchase order, the functions create credit note should also work but there are parameter settings and control mechanisms for this.
AX 2009 supports both the return in a separate return order and the return on the same order. There are certain advantages to each option depending on the internal process and auditing requirements. If you want to do it on the same order then the “create credit note” function is the best way to do it as it will automatically create a line that references the original receipt lot (only important though in certain cases of FIFO and LIFO costing and for reporting). So you’re on the right track. One thing that I see frequently go wrong with using the “create credit note” function is that the “Delete Purchase Line” (top of the screen) box is checked and deleting invoiced lines is not allowed. That leads to an error message. Make sure that that field is not checked. Any chance that this is your problem?
After the return line is created and you’ve posted the invoice make sure that the original invoice is settled with the credit (otherwise it will come up in the payment proposal run). Depending on the setup in the posting profile this is automatically done or has to be done manually. Have a look at the transactions in Functions → Open Transaction Editing. If you see an entry here for the credit note then you still have to settle the original invoice with the credit note.
I would just go to that PO and select the line item and in the quantity tab just enter the negative quantity amount in the received now field. Next post the pack slip which should be a negative and then post the invoice which would be the credit note.
Final step is to apply the the credit note to the posted invoice in vendor detail function open transaction editing.
Yipster, true, entering a negative quantity in the “received now” field on the original line works technically. I don’t think it is the best practice though. The order line will be set back to status “open order” and for material planning purposes the delivery is still expected. In my experience controllers are usually not happy with this solution and in public companies I’d think it would conflict with SOX requirements. It’s often requested that lines are locked down after invoicing so that no changes can be made to an invoiced line. I would only use the “negative received now” procedure for corrections to internal data entry errors.
Another reason why “Create Credit Note” might not work is that the AP parameter “safety level of invoiced orders” is set to locked and all lines on the order are invoiced. (see AP parameters/“Update” tab)
That means that the AP parameter “safety level of invoiced orders” is set to “locked”. (see AP parameters/“Update” tab). In order to return the items on the original order you would have to set this parameter to “warning” or “none”. (close the PO order form and open it back up after you made the change). That will allow you to make changes to an invoiced order. Unfortunately it’s either all or nothing with this parameter (incl. allowing to delete invoiced lines). In the past I have actually made a small script change for companies that wanted to lock invoiced lines but still be able to add lines to an order (depending on the exact requirements there are different technical solutions).
to clarify: “creating a credit note” in the solution suggested above refers to that function in the purchase order form, not to creating a credit note in an invoice journal (which I think is what you are referring to). If the “create credit note” function is executed in the purchase order form then it will create a negative return line that references the original line. Posting the packing slip on that return line will subtract the items from inventory. Hope that clears it up. Otherwise let me know ~Karin.
You are correct, I just tested it out by creating a credit note in AP. All it does is enter a new line with a negative qty. Then you have to pick the item, post up the pack list, post up the invoice. Next apply the credit to the invoice to have the updated balance. Also the inventory is deducted too.
I am having the same issue I need to create negative “Receive Now” and then we posted the PO so it made Inovice PO to an Open order and now when i try to receive already returned item I am getting Error “Quantity 10.00 cannot be received because items have already been returned.”
I already tried altering AP parameters on update tab by changing it to warning or none but still its not allowing me to receive already returned item.
I am having the same issue I need to create negative “Receive Now” and then we posted the PO so it made Inovice PO to an Open order and now when i try to receive already returned item I am getting Error “Quantity 10.00 cannot be received because items have already been returned.”
I already tried altering AP parameters on update tab by changing it to warning or none but still its not allowing me to receive already returned item.
We have just started using Microsoft Dynamics and finding it a bit troublesome. We posted a PO but unfortunately it was incorrect and now our inventory is not reflecting correct quatities. Is there a way to reverse this transaction? It has not been invoiced yet only posted. Please help!!!
~Karin.