Oops! Dynamics 365 Business Central makes error correction easier than ever

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“I never made a mistake in my life.  I thought I did once, but I was wrong.” 

Though I remember my dad saying this to me when I was a kid, this quote is credited to Charles M. Schultz and the words still resonate in my mind today.  My dad was just being a goofball, but the real message I take from this phrase is that no one is perfect—we all make mistakes.  Though Business Central can’t fix any questionable life decisions, it offers some robust functionality that allows to easily correct posted documents in Dynamics 365 Business Central, in just a few simple steps.

Get familiar with “Correct”

The “Correct” functionality, as I call it, exists for both Posted Purchase Invoices and Posted Sales Invoices and offers the same three options - Cancel, Correct, and Create Corrective Credit Memo. Though the options are listed in order from left to right in the Business central Correct menu, I will explain them from right to left since they build on each other and each of the options “adds” an additional automated correction component to the previous when considered in this reverse order. I will explain what each one does, when to use it and what to watch out for.

 

This table shows the options and their differences.  The table provides a good visual aid in understanding your options when it comes to error correction.

Create Corrective Credit Memo

What it Does: Creates a reversal of the posted document that the user can edit prior to posting.

More Details: The Create Corrective Credit Memo option will create a credit memo with the same line and header information as the original invoice.  As seen in the table, this is the only option that allows the user to review and edit the credit memo before posting.  Because the credit memo is being created from the original invoice, the application between the two documents happens automatically upon posting.

When to Use it:

 What to watch out for: 

  • Prior applications (payments, credit memos, etc.) to the invoice - The user will still be allowed to create a credit memo using this method even if the original invoice is not open, however there will be no automatic application of the credit memo.
  • Posting date - This is the only option that can be used for invoices posted in a period that is now closed, but the user needs to be aware that the posting date on the credit memo will need to be modified before posting.

Cancel

What it Does: Reverses the posted document without allowing changes by the user prior to posting.

More Details: The Cancel option will create a credit memo with the same line and header information as the original invoice.  The user DOES NOT have the ability to review this credit memo before it posts.  As with Create Corrective Credit Memo, the application between the two documents happens automatically.

When to Use it:

 

 What to watch out for: 

  • Prior applications - This option will not work if the original invoice has already been closed and there are applied entries.  The user can either unapply the entries and then use Cancel, or, use the Create Corrective Credit Memo option.
  • Closed periods - This option will not work if the original invoice was posted in a period that is now closed. I recommend using the Create Corrective Credit Memo option in this situation so the posting date can be edited.

Correct

What it Does: Reverses the posted document without allowing changes by the user prior to posting AND creates a new invoice that the user can edit before posting.

More Details: Similar to the Cancel option, Correct will create and post a credit memo with the same line and header information as the original invoice.  The difference is that Correct creates a new invoice that has the same information as the original invoice that the user can modify before posting.  As with Create Corrective Credit Memo and Cancel, the application between the original invoice and credit memo happens automatically.

When to Use it:

 

 What to watch out for: 

  • Prior applications - As with Cancel, this option will not work if the original invoice has already been closed and has applied entries. The user can either unapply the entries and then use Correct, or, leave the entries applied and use the Create Corrective Credit Memo option.
  • Closed periods - This option will not work if the original invoice was posted in a period that is now closed. I recommend using the Create Corrective Credit Memo option in this situation so the posting date can be edited.
  • New invoice creation - The user should be aware that a new invoice has been created that they will need to modify with any changes (dates, customer/vendor, amounts, etc.) and post.

 

As an additional note, if any of the Correct options have already been used for a posted document, the user will see more limited options in the menu.  In the below screenshot, I used the Cancel option and then navigated back to the original posted document.  The only options available from here are to Create a Corrective Credit Memo or to Show the Canceled/Corrective Credit Memo.  If you see limited options, it means the Correct functionality has already been utilized for the posted document.

 

If you ever forget what any of three Correct options do, you can simply hover over each option with your mouse and more information will appear in the Tool Tip (a little window next to or underneath the option.)  This is another great feature of Dynamics 365 Business Central that exists throughout the system to help users navigate through different functionality and options.

Though this isn’t a new feature with the October 2020 release, the ability to correct posted documents in Dynamics 365 Business Central is a feature every accountant should know. If you’re interested in my favorite new features in BC 2020 Wave 2 (v17) please check out my on the New View Strategies blog, and if you’d like to discuss how else you can streamline your accounting processes with Dynamics 365 Business Central, contact me at [email protected]. If we know how to properly utilize this great error correction functionality Microsoft has provided, fixing mistakes will be much quicker and less painful – not that us accountants make any!

 

Blog by: Cari Corozza, New View Strategies – Helping you to love your BC / NAV system.

 

Note:  After publishing this article, I discovered with the help of a reader that the ‘Correct’ option is limited when used on an invoice that has been posted from a sales order that has been completely shipped and invoiced.  The posted invoice will be canceled, however a new invoice will not automatically be created.  Business Central will present a warning screen that appears as follows:

As noted in the message, the user has the option to use the Copy Document action to create the new invoice.  Thanks to our readers for helping me discover this scenario!

4 thoughts on “Oops! Dynamics 365 Business Central makes error correction easier than ever”

  1. Good catch! I tested ‘Correct’ on a posted invoice from a Sales Order that was completely shipped and invoiced and got the same message you noted in your comment. I didn’t run into this during testing, but it’s possible I didn’t test this exact scenario. I checked with a colleague and she hadn’t come across these previously with the Correct functionality either.

    The message seems to be very intentional by Microsoft and specific as to why it won’t create a new invoice so I don’t believe it’s a bug, but it’s definitely a scenario that I didn’t catch to include in my article!

  2. Drew- Do you have a little bit more information around the issue you are running into? I did a quick test in the BC 17.1 CRONUS database just now on a Posted Purchase Invoice and the ‘Correct’ function worked as expected for me. I would like to know a little bit more around your situation if you don’t mind providing more detail so that I can help look into it.

    1. Hi Cari,

      We run into this issue when we try to a correct an order that has been fully shipped and invoiced. When we hit Correct it pops up a dialog box that says, “The invoice was posted from an order. The order has been deleted, and the invoice will be Canceled. You can create a new invoice or order by using the Copy Document action. Do you want to continue Y/N”

  3. Did Microsoft break the creation of the new invoice when a correction is being performed. In our 17.1 SaaS system when we correct it generates and applies the CM, but no new invoice is generated. Instead it prompts us to copy a document.

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