Vendor credit notes and item returns Microsoft Dynamics AX

Vendor credit notes and item returns Microsoft Dynamics AX

If you receive a credit note from a supplier you have to register and post it. Posting a credit note works

as posting vendor invoice except that credit note requires negative quantity. Types:

• Credit notes for inventoried items – items are returned to the vendor
• Credit notes for intangible items – services, fees

For inventoried items, vendor credit notes have to be registered in the purchase order form. Processing

this PO includes the (negative) product receipt for the item return and the (negative) invoice for the financial credit invoice.

For intangible items, you can register a vendor credit note in the following forms:

1. Purchase order
2. Pending vendor invoice
3. Invoice journal

Credit note with item returns

If you want to record a credit note in a new line in the original PO, open this PO in edit mode and insert a regular order line but with negative quantity. Approval may be needed depending from the setup.

If you want to use a new order for the credit note, you can enter a regular PO with purchase type:

• Purchase order
• Return order

where order lines have negative quantity.

Credit note without item return

If you receive a credit note from a vendor, which covers a price reduction, there is no actual physical return of an item. A way to process such a refund is to register and post a PO with two lines. One line with the negative quantity and original price (credit note) and one with positive quantity and the new price (invoice).