(EEUR) Correct a free text invoice using a credit note [AX 2012]

Updated: December 6, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

When you correct an invoice that has been posted, a corrected invoice is created, and you can modify the invoice and post it with the new values. When you post the corrected invoice, a canceling invoice is created, which brings the combined balance of the original invoice and the canceling invoice to a zero amount.

When a free text invoice has already been issued, you should use a credit note to correct the original invoice. A credit note contains a reference to the original invoice, all corrected and optional corrective lines, and the reason for the correction.

For example, if you correct an original posted invoice that has a balance of 500.00, a corrected invoice will be created that has a balance of 500.00. You can change the information for the invoice, and then post it. When the corrected invoice is posted, a canceling invoice will be created that has a balance of -500.00. This brings the combined balance of the original and canceling invoices to 0.00.

Before you can create a credit note, you must follow these steps.

  1. Click General ledger > Setup > General ledger parameters. In the Ledger area, on the Accounting rules FastTab, select the Correction check box. Transactions that have negative amounts can now be posted as corrections in the general ledger.

  2. Click Accounts receivable > Setup > Accounts receivable parameters. In the Updates area, on the Invoice FastTab, select the Credit note as correction check box.

  1. Click Accounts receivable > Common > Free text invoices > All free text invoices.

  2. Select a posted invoice.

  3. On the Action Pane, click Create credit note, and then enter the following information:

    • Reason code – Enter or select the reason code that describes why the invoice is being corrected.

    • Reason comment – Enter any additional comments about the invoice cancellation.

    • Create corrective lines – Select this check box to create a corrected invoice. Select the invoice date to assign to the canceling invoice.

    • Copy exchange rate – Select this check box to copy the exchange rate from the original invoice to the free text cred note.


    By default, the Create corrective lines check box is selected. A selected check box indicates that both the corrected and corrective lines are created. To reverse the original transaction without creating a corrective line, clear the Create corrective lines check box.

  4. Click Edit and make any necessary changes to the invoice.

  5. In the Free text invoice form, on the Action Pane, click Post and then click OK. The corrected invoice is posted, and a canceling invoice is automatically created.


    To view the original invoice and the credit note, in the Related information group, click Invoice journal to open the Invoice journal form.

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