Reverse transactions in Microsoft Dynamics 365 for Finance and Operations, Part 1
February 21 2019
No business can avoid the need to reverse major transactions from time to time. Since Advanced Warehousing was added to Microsoft Dynamics AX and now Dynamics 365 for Finance and Operations, the reversal of transactions has become more involved, but it is still possible. For completeness, this two part article (second part here) will also remind the reader of the reverse transaction when Advanced Warehousing is not involved.
Part One
- 1.1 Unship a shipped Sales order
- 1.2 Unreceive a Sales RMA
- 1.3 Unreceive a Purchase order
- 1.4 Unship a Return purchase order
- 1.5 Unpick production order materials
- 1.6 Un-consume production order materials
- 1.7 Reverse reported asfFinished
- 1.8 Transfer orders
- 1.9 Project journals
1.1 Unship a shipped Sales order
Without Advanced Warehousing, the “Correct” and “Cancel” buttons on the Packing slip journal are used to unship a shipped sales order. However, if you do have Advanced Warehousing, the reversal of a shipped sales order can only be done via the load.
Step 1: The status of the sales line in the Inventory Transactions table is “Deducted”.
This means that a packing slip journal will exist.
Within the packing slip journal, the “Cancel” button will be disabled and even though the “Correct” button is enabled, it is not permitted for corrections.
To reverse the shipped sales order, go to the load details on the sales order line.
On the load there are two steps:
Step 1: Cancel the packing slip in the load details page. Under the ship and receive action pane, click on cancel packing slips.
Click “Yes” to continue canceling all packing slip lines related to the load.
If cancel packing slip fails, an error message like this will be displayed:
If the error above is displayed, it can be resolved by removing any markings on the sales lines.
Step 2: Reverse shipment confirmation applies if the shipment was confirmed. Under the ship and receive action pane, click on reverse shipment confirmation. Reverse shipment confirmation is only enabled if cancel packing slip was successful.
Under the loads action pane, click on reverse work. Reverse work will be enabled after reversing a shipment confirmation.
Select what the system should do with the items in the reverse work page.
After the system has successfully unshipped the sales order line, the inventory can now be used for other orders and the Inventory Transactions table should look like this:
Three lines will show, the first two represent the reversal and the last line is the current situation of this line.
1.2 Unreceive a Sales RMA
Receiving a sales RMA cannot be done using Advanced Warehousing. Instead the “arrival overview” functionality should be used. If the reader is not familiar with this process, this article will help.
After the arrival overview process, including the posting of the returned order packing slip, we should have a posted packing slip journal that has “Correct” and “Cancel” options.
If we click on the “Cancel” functionality, it will generate an error.
In this case, the “Correct” functionality should be used to reduce the negative quantity in the “Update” field which will populate the read-only “Quantity to be reversed” field.
This should work correctly and the inventory transactions will show the following:
The “Cancel” functionality is not needed since the same can be accomplished by using “Correct” functionality and then reducing the quantity in the “Update” field to zero.
1.3 Unreceive a Purchase order
If the purchase order (PO) has been received without the Advanced Warehousing handheld menu, the “Correct” and “Cancel” button on the posted packing slip can be used to unreceive the purchase order. However, if the PO has been received with the Advanced Warehousing handheld menu, the steps to unreceive it will depend on whether the packing slip has been posted. Some companies have one person doing the “registration” of the purchase order via the handheld terminal and another person posting the packing slip in the office. In that case there is a chance we detected the error before the packing slip was posted. Other companies have the same worker doing the handheld “registration” and the post packing slip, which will reduce the chance we catch the error between registration and posting the packing slip.
If the PO needs to be unreceived before the packing slip has been posted, the inventory will need to be unregistered. Since there is no packing slip journal yet, the “Cancel” and “Correct” options are not available.
To unregister the inventory, use the registration page. In the Inventory Transactions table, the status of the line is “registered”.
The registration is on an in-dock location, but there is no inventory there. The on-hand inventory is actually in the put away location.
Next step we have to take is to transfer the quantity we want to unregister from the put away location to the in-dock location. The license plate number has to be used for the in-dock location. This number can be found in the transaction history of the item.
After the transfer, the unregister step will work.
If the PO needs to be reversed after the packing slip has been posted, then the “Correct” and “Cancel” options can be used in the product receipt journal.
The “Cancel” option will display the following message. It will cancel the receipt for all the PO lines.
For a PO with multiple lines in which only one line has to be corrected, the “Correct” functionality should be used. Correct functionality will update only the selected line, leaving the other purchase lines untouched.
Canceling or correcting the PO lines will display the same error message that we saw when we tried to un-register a line. The system will try to reverse the on-hand quantity from the in-dock location but that inventory is no longer available in that location. The inventory was there briefly during the “pick” step of the receiving work.
In order for the “Cancel” and “Correct” to work, we have to transfer the inventory of all PO lines we want to reverse from the put away location back to the receiving dock. The receiving dock location will demand a license plate number that can be found in the transaction history of the item.
After doing this transfer, “Cancel” and “Correct” will work and the PO ends with Inventory Transaction status changed to “Ordered”.
NOTE: Update 23 of Version 8.1 has greatly improved this process. It is no longer needed to transfer quantities. The "Cancel" and "Correct" buttons work exactly as they would work for Non-advanced warehouses.
1.4 Unship a Return Purchase order
A return purchase order requires manual reservation. It is not possible to process it through Advanced Warehousing. After the packing slip has been posted, we have the familiar “Correct” and “Cancel” options in the Product receipt journal.
The “Cancel” option should work as expected and cancels the product receipt.
After the product receipt has been canceled, Inventory transactions will show the following:
Three lines will show, the last two represent the reversal and the first one is the actual situation for this line.
For the “Correct” option, reduce the negative quantity in the “quantity” field, which will populate the read-only field “Quantity to be reversed”. This will happen instantly without clicking anywhere.
The Inventory transactions should look like this if it works correctly.
Why four lines? The middle two lines represent the correction. The bottom line is what remains deducted and the top line is the correction where we un-deducted two EA that are now “on order” again.
In part two we will continue the exploration, starting with how to unpick production order materials.
NOTE: Update 23 of Version 8.1 has greatly improved this process. It is no longer needed to transfer quantities.
The "Cancel" and "Correct" buttons work exactly as they would work for Non-advanced warehouses.