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

Part Two

  • 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”.

status_of_sales_line_is_deducted

This means that a packing slip journal will exist.

Packing_slip_journal

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.

correct_button_enabled_packing_slip_journal

To reverse the shipped sales order, go to the load details on the sales order line.

reverse_shipped_sales_order_in_load_details

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.

cancel_packing_slips_under_ship_and_receive_action_pane

Click “Yes” to continue canceling all packing slip lines related to the load.

click_yes_to_continue_canceling

If cancel packing slip fails, an error message like this will be displayed:

error_message_details

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.

reverse_shipment_confirmation

Under the loads action pane, click on reverse work.  Reverse work will be enabled after reversing a shipment confirmation.

reverse_work_under_loads_action_pane

 Select what the system should do with the items in the reverse work page.

select_what_to_do_with_items

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:

inventory_transactions_table_appearance

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.  

correct_and_cancel_options_on_packing_slip_journal

If we click on the “Cancel” functionality, it will generate an error.

error_when_cancel_function_clicked

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.

correct_packing_slip

This should work correctly and the inventory transactions will show the following:

inventory_transactions_display

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”.

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.

registration_on_an_in-dock_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.   

correct_and_cancel_options_available_in_product_receipt_journal

The “Cancel” option will display the following message.  It will cancel the receipt for all the PO lines.

cancels_the_receipt_for_all_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.

inventory_no_longer_in_location

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.

options_after_packing_slip_posted

The “Cancel” option should work as expected and cancels the product receipt.

cancel_option_should_work_as_expected

After the product receipt has been canceled, Inventory transactions will show the following:

inventory_transactions_will_show

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.

product_receipt_correction

The Inventory transactions should look like this if it works correctly.

appearance_of_inventory_transactions

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.

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About Evert Bos

I am Evert J Bos, ERP consultant since 1986. I started in Europe with IMS7 (A Honeywell Bull Mainframe ERP system) and the BaaN ERP system. Since 1995 I have worked in the USA and since 2004 I have been working with Dynamics AX.  I work for Sikich and focus mostly on manufacturing companies that make complex, engineered products.

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