Sales & Receivables User Guide in Dynamics 365 Business Central

Sales Credit & Returns

Sales Credit memos are issued for customer returns. Credit Memos offset the original invoices. The invoices must not be paid for the credit memo to be applied.

Full Return Credit (Unsettled Sales Invoice)

Once the Sales Invoice is posted, customer return credit can be processed by correcting the posted sales invoice in full.

1. Navigate to Posted Sales Invoices list page.

   
   
   

2. Invoices that can be corrected are marked with No in the Closed status column. Identify and highlight the customer and invoice to correct.

3. From the menu option, select Correct > Correct and a prompt will display to confirm that the order and invoice will be cancelled, and a credit memo applied.

   
   
   

4. Continue with Yes to auto-create the offsetting credit memo and cancelling the invoice.

   
   
   

   When completed, the invoice will have a closed and cancelled status, and the remaining amount will be $0 (i.e. no payment balance). The new Credit Memo will be created and posted with reference to the cancelled invoice.

   Example:

   
   
   

5. Print the posted credit note to send to the customer.

Partial Return Credit

If the customer wants to partially return some sold items, use menu option Correct > Create Corrective Credit Memo.

1. The invoice is unsettled (remaining amount = amount including VAT). Using the Create Corrective Credit Memo option on the selected invoice will offset the invoice and create a new Credit Memo.

   The new credit memo copies all sales order lines and quantities.

   Open the new Credit Memo and adjust the quantities to credit (or remove sales lines for sold items not returned) according to the partial return.

   Example:

   
   
   

2. The applied-to invoice should default in the fields Applies-to Doc. Type and Applies-to Doc. No (The invoice no. reference is also stated in the Comment line in FastTab).

   NB: If these 2 fields are missing the invoice reference, select the correct invoice reference.

3. After completing the quantities and items to be credited (partially) against the posted sales invoice, Post the credit memo and print.