Dynamics NAV2017: Correcting Ledger Entries

Today we’re going to talk about how to correct
entries in Dynamics NAV. The version of Dynamics NAV I’m using is 2017,
and 2017 actually has some features that are new. So, I thought we would show you those new
features and then talk about traditionally—if you don’t have 2017–what are your options
today for correcting Invoices or Payments or Ledger Entries that affect your Customer
or Vendor. And really some of these tricks will work
for Bank Ledger’s, Fixed Asset Ledger’s, Item Ledger’s, as well, beyond just Customers and
Vendors. So, let’s start. We’ll look first at a Customer Record and
take a look at the Ledger Entries for this customer. I’m in Clean Cronus, so I’ll take a look at
Cannon Group and I will drill down on to their Ledger Entries. If I need to get rid of one of these transactions
or I need to adjust it, what are my options? Well with 2017 we’ve got a couple of nice
options. If I take a look at this $100.00 invoice first,
I can come in here and I can Show Posted Document. From the Posted Document screen, I have the
ability to correct. And then under Actions, I also have the ability
to Create a Corrective Credit Memo. What are the difference in those two? Well if I go back to Correct, correct will
only work on Invoices where the Line Type is not a G/L Account. So correct will not work on this invoice for
me. If this was an Item Type and the invoice was
for types of items–such as inventory items—the Correct would actually automatically create
a credit memo and off-set that posted invoice to bring it to zero. It will then recreate this exact invoice and
bring it up for me on the edit screen to enable me to correct it and change it and make it
right. This is a very good option for if you put
the wrong item on a customer’s order–or have something else and you posted it–and you
need to correct that invoice and change the item or change the quantity and resend it
to the customer, the Correct is one of the best ways to do it. If, however, you just want to get that invoice
out of there the fastest way to do that would be to use Actions, Create Corrective Credit
Memo. What that will do is create a credit memo
and bring it open into the Edit Screen and it will duplicate any of the lines, including
Type G/L Account, and enable you to post a credit memo so that you can then go apply
that to your Invoice and Ledger Enters. You could apply it on the Credit Memo Screen,
as well. So that’s an easy way to do the documents. Now what if I’ve got a payment or something
besides an invoice that I want to reverse? I want to get this payment out of here for
this customer. Again, I can go up to the menu bar up here
and I have a button to Reverse Transaction. The Reverse Transaction action will only work
on ledger entries that originated from a journal. An invoice does not originate from a journal. It could, theoretically, but most of the time
it originates from a document screen such as Sales Invoice or Sales Order. On the Payment row, payments do originate
from a journal–and remember Journals are entries where they’re all the entries are
made on the individual lines. There’s not a header and line combination. I can highlight my payment, choose to Reverse
Transaction, and it will bring up and propose for me the complete reversal of that entry
in my NAV system including the Customer Ledger Entry, G/L entry and Bank Account entry. I can simply hit Reverse, that will post the
correction, and it will make it as if this payment was never entered for that customer
in the first place. So that’s an easy way to reverse any transaction
that originated in a journal. Part of the challenge in Dynamics is knowing,
if my invoice was created and is of Type Item, then an option that I may have is the Correct
option, the Correction option, option to Correct. Or I can go to Actions and hit Corrective
Credit Memo. If my transaction originated in a journal
such as this payment, then my option is to Reverse the Transactions. I’m going to show you one other option as
well. And that is you can always correct a transaction
inside of NAV using a General Journal. The General Journal transaction will enable
you to post through to the subsidiary ledgers. If we go and open up our General Journal and
we will leave the date, well come out and change our Account Type to Customer. I’ll pick my customer. All I need to do now is create the amount. Post the amount into the customer account. Now, notice that I’m going to keep the Document
Type blank–even if I’m reversing a payment or an invoice. I suggest you keep the Document Type blank
by selecting Document Type. The system will start to enforce some rules
regards to the type of accounts and the amounts that you can post. So, if you keep that Document Type blank–that’s
a little tip–that will let you get past that. Now, as always, entering a General Journal
transaction, the positive and the negative has to do with how it’s going to be represented
on your Trial Balance. The positive number being a debit, the negative
number being a credit. In this case, if we want to reverse a payment
from a customer, a payment hitting our Accounts Receivable account is hitting that account
as a credit. As a result, I’m going to reverse the payment
by entering a positive $10,000. Then I’ll simply–I’m going to knock out my
off-setting balancing account there and do it on two lines. Anytime you split to a second line, and you
don’t have to, keep your Posting Date the same and keep Document Type blank. Now the off-setting account, here. I can off-set this through my Bank Account
or to a G/L Account. It doesn’t matter. And if I want to off-set this to a Bank Account
all I do is select–or I change it over there—select my operating Account, or Cronus. I’ll enter a brief description there and do
maybe the $10,000. I’ve got to delete that balancing account
as well. My, this Journal Batch for CASH is defaulting—my
balancing account—and that’s ok. Now I’m in balance. It’s going to take $10,000 out of this bank
account and it’s going to put $10,000, as owed, back into this Customer Ledger. This transaction, once they’re posted into
the Customer Ledger, it will enable me to apply those transactions just like a payment
or an invoice anywhere else. So, all I have to do is post that transaction–I’ll
go ahead and post it and we can take a look at it up there and in the customer card. Notice that that posted with no problem. And now when I go out, back to my Financial
Management and Receivables and the Customer Account, I’ll see that transaction out there. So, here on the Canon Group, we’ll take a
look now at their ledger entries. And now I can see my General Journal Transaction,
they owe me $10,000 again because I reversed part of this credit memo or a part of the
payment. You can always use a General Journal to reverse
any transaction. And you can put amounts into the Customer
Ledger or take them out of the Customer Ledger based on whether that’s a positive or negative
entry in that General Journal. Remember to determine that, you have to come
back to how it looks, how it hits the Trial Balance. So those are your options for making corrections
in Dynamics NAV. Thanks for watching. If you have any questions, give us a call.

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