Learn How To Save Time By Using The "Cancel" Option to Reverse A Posted Sales Invoice

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In this article, we will walk users through an easy way to quickly and correctly reverse a posted sales invoice generated inside Dynamics 365 Business Central. 

Does this happen in your business?  Often in business an invoice gets created inadvertently or with the wrong amounts.  However, Business Central allows you to quickly “cancel” a posted sales invoice without having to create a credit memo and manually applying that credit memo to the posted sales invoice to completely offset it.

Generally, users will post sales invoices in the standard business process flow by completing shipments then immediately invoice the shipment.  In some cases, the invoice might be for the wrong amount, or a specific freight charge might be missing.  In this case, Business Central allows users to quickly reverse a posted sales invoice without much additional work.  Simply navigate to the posted sales invoice list view and highlight invoice that needs to be canceled.

One can quickly go ahead and right click on the ellipse button to open a drop-down menu option and select “cancel”.  By selecting this function, the system will go ahead and prompt the user if 100% sure they want to carry on with reversing this posted sales invoice.  As you can see in the example below, we selected the current remaining amount on this posted sales invoice is $1800.

Once “Yes” is selected to reverse the posted sales invoice the system prompts a message to review the auto created and posted credit memo.

Back on the posted sales invoice list view, the canceled invoice is completely closed with the remaining amount of $0.00 and there is an “yes” value under the cancel column.  Doing this will also reverse the related shipment transactions attached to the posted sales invoice.  

It’s really that simple!  Business Central will allow users to quickly reverse the posted sales invoice without having to jump through hoops to complete a simple transaction.  The system will also create the related reversal journal entries to fully reverse the sales, receivable and shipment for the original sales invoice transaction.

If you have any questions on this process or any other process for Dynamics Business Central, and formerly NAV please contact our team at AdCirrus ERP.  We would love to help you.

2 thoughts on “Learn How To Save Time By Using The "Cancel" Option to Reverse A Posted Sales Invoice”

  1. It is totally crazy, that after cancel the invoice, all the shipment were cancelled automatically. How could we just cancel the invoice, and keep the shipment?

    Is it really easy? you cancel the invoice , and the shipment was cancelled too, that you need to the shipment again, and do the invocie again. You said, it is easy?

    1. Thank you soo much for your feedback on our article. Yes, you are correct. The system does reverse the shipment when using the "cancel" and "correct" function. In your case, because you don't want to touch the original shipment, I would suggest to manually create a sales credit memo. This function is designed to reverse the full transaction. Thanks for pointing this out and we will update our article. Let us know if we can help you at all. Have a great day!

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