How to: Process Sales Returns or Cancellations
This topic applies to Microsoft Dynamics C5 2016 and solutions that use the Simplified UX objects.
If your customer wants to return items or cancel services that you have sold to the customer, then you must create and post a sales credit memo that specifies the requested change with regard to the original sales invoice. You can use the Copy Document function to fill the sales credit memo with the correct sales invoice information. The change may relate to all the products on the original sales invoice or only to some of the products. Accordingly, the customer may partially return delivered items or demand partial reimbursement of delivered services. In that case, you must edit the copied sales invoice information.
You can apply the sales credit memo to one or more posted sales invoices. This reverses the ledger entries that are affected by the change and enables a refund payment to the customer. If you want to apply the sales credit memo to a specific posted sales invoice, follow step 4. If you want to apply the sales credit memo to multiple posted sales invoices, follow steps 14 through 18.
You can send the posted sales credit memo to the customer to confirm the return or cancellation and communicate that the related value will be reimbursed, for example when items are returned or a service cancellation is agreed.
Note
If a posted sales invoice has not yet been paid, then you can use the Correct or Cancel functions on the posted sales invoice to automatically reverse the involved transactions. These functions only work for unpaid invoices, and they do not support partial returns or cancellations. For more information, see How to: Correct or Cancel Unpaid Sales Invoices.
To create a sales credit memo
In the Search box, enter Sales Credit Memos, and then choose the related link.
In the Sales Credit Memo window, on the Home tab, in the New group, choose New.
In the Customer Name field, enter the name of an existing customer. This is a search-as-you-type field. Name is the default filter.
Note
If you prefer to find and enter customers by number or telephone number, you can easily change the default filter. For more information, see How to: Enter Data.
Other fields on the sales credit memo header are now filled with the standard information about the selected customer. You can edit all the fields, such as the fields in the Payment Details group, to reflect the credit memo agreement.
To apply the sales credit memo to one posted sales invoice, fill in the fields in the Application Details group as described in the following table.
Field Description Applies-to Doc. Type
Specify the type of document that the sales credit memo is applied to.
Applies-to Doc. No.
Specify the sales document that the sales credit memo is applied to.
Applies-to ID
Specify if the sales credit memo is applied to one or more posted sales invoices using the Apply Entries function. For more information, see step 14.
When you post the sales credit memo, it will be applied to the specified posted sales invoice.
On the Home tab, in the Process group, choose Copy Document.
In the Copy Sales Document window, select Posted Invoice in the Document Type field.
Choose the Document No. field to open the Posted Sales Invoices window, and then select the posted sales invoice that you want to reverse.
Select the Include Header check box if you want to overwrite the current header on the sales credit memo with the header information of the selected posted sales invoice.
Note
The information that you defined in the Application Details group will not be overwritten.
Select the Recalculate Lines check box if you want the copied posted sales invoice lines to be updated with any changes in item price and unit cost since the invoice was posted.
Choose the OK button. The copied invoice lines are inserted in the sales credit memo.
If the full invoice quantity is returned or canceled for complete reimbursement, then go to step 19 to post the sales credit memo.
In other scenarios, such as partial returns with reimbursement, or if additional products are returned, proceed to fill or edit the sales credit memo lines manually.
On the Lines FastTab, in the No. field, enter the number of an inventory item or service. This is a search-as-you-type field. No. is the default filter.
Note
If you prefer to find and enter items by name, then you can easily change the default filter. For more information, see How to: Enter Data.
In the Quantity field, enter the number of items to be reversed.
Note
For items of type Service, the quantity is a time unit, such as hours, as indicated in the Unit of Measure Code field on the line.
The Line Amount field is updated to show the value in the Unit Price field multiplied by the value in the Quantity field.
The price and line amount are shown with or without VAT depending on what you selected in the Prices Including VAT field on the customer card.
Repeat steps 11 and 12 for every inventory item or service that you want to reverse.
The totals shown at the bottom of the sales credit memo are automatically calculated as you modify the lines or create new lines.
To apply the sales credit memo to multiple posted sales invoices, on the Home tab, in the Process group, choose Apply Entries.
In the Apply Customer Entries window, select the lines with the entries that you want the applying entry to be applied to.
On the Navigate tab, in the Application group, choose Set Applies-to ID. The number of the sales credit memo is inserted on the selected lines.
On each line, in the Amount to Apply field, enter the amount that you want to apply to the individual entry. If you do not enter an amount, the maximum amount is automatically applied. At the bottom of the Apply Customer Entries window, you can see the specific amount in the Applied Amount field and also whether the application balances.
Choose the OK button to close the Apply Customer Entries window. When you post the sales credit memo, it will be applied to the specified posted sales invoices.
When you have created the needed sales credit memo lines and the single or multiple applications are specified, you can proceed to post the sales credit memo.
On the Home tab, in the Posting group, choose Post and Send.
The Post and Send Confirmation dialog box opens showing the preferred sending method for the customer. You can change the sending method by choosing the AssistEdit button to the right of the Send Document to field. For more information, see How to: Set Up Document Sending Profiles.
The posted sales invoices that you apply the credit memo to are now reversed, and a refund payment can be created for the customer.
The sales credit memo is removed and replaced with a new document in the list of posted sales credit memos, which you access from the Role Center.
See Also
Tasks
How to: Correct or Cancel Unpaid Sales Invoices
How to: Invoice Sales
How to: Register New Customers
How to: Set Up Document Sending Profiles
Other Resources
How to: Register a New Product
Working with Microsoft Dynamics NAV
Small Business Role Center