Reversing a PPV for a Purchase Return Credit Memo in Dynamics NAV

Reversing a PPV for a Purchase Return Credit Memo in Dynamics NAV
The item was later returned and a Purchase Credit Memo was issued and posted, but the PPV was not reversed. We have set up the following example to illustrate: Screenshot showing an example of a standard cost item of $2.00
Figure 1 – Screenshot showing an example of a standard cost item of $2.00 We created and posted a purchase order with the cost of $3.00. This resulted in a Purchase Price Variance of $1.00: Screenshot of a posted purchase order with the cost of $3.00, resulting in a Purchase Price Variance of $1.00
Figure 2 – Screenshot of a posted purchase order with the cost of $3.00, resulting in a Purchase Price Variance of $1.00 We then created and posted a Purchase Credit Memo, which created the following General Ledger entries: Screenshot of General Ledger entries created after posting a Purchase Credit Memo
Figure 3 – Screenshot of General Ledger entries created after posting a Purchase Credit Memo You can see that the Purchase Price Variance has not been reversed and that it has left the Purchases Account and Direct Cost Applied Accounts with a different balance. For more information on this setup, please see our previous Blog on Exact Cost Reversing. We again created a posted a Purchase Order to get the same Purchase Price Variance of $1.00. Screenshot of a posted a Purchase Order, resulting in the same Purchase Price Variance of $1.00
Figure 4 – Screenshot of a posted a Purchase Order, resulting in the same Purchase Price Variance of $1.00 To reverse the Purchase Price Variance in a Purchase Credit Memo, you must select the ‘Applies to Item Ledger Entry’ that created the original Purchase Price Variance. Select the ‘Applies to Item Ledger Entry’ to reverse the Purchase Price Variance in a Purchase Credit Memo
Figure 5 – Select the ‘Applies to Item Ledger Entry’ to reverse the Purchase Price Variance in a Purchase Credit Memo Now when the Credit Memo is posted, the Purchase Price Variance is reversed. Screenshot showing that the PPV is reversed when the Credit Memo is posted
Figure 6 – Screenshot showing that the PPV is reversed when the Credit Memo is posted For more information on this or any other Dynamics NAV topic, please contact ArcherPoint. For more step-by-step instructions on how to perform specific tasks in Microsoft Dynamics NAV, see our collection of How-To blogs.

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