Activate storno accounting

Use these procedures to set up storno accounting in Microsoft Dynamics 365 for Finance and Operations. In storno accounting, you reverse the sign on amounts to reverse incorrect original transactions. For example, the following transactions are incorrectly recorded.

Description Debit Credit
Sales revenue 100.00
Accounts receivable 100.00

To reverse the transactions and post the reversing transactions as storno transactions, you enter the following information.

Description Debit Credit
Sales revenue -100.00
Accounts receivable -100.00

Each reversing transaction appears in the same debit or credit column as the original transaction. By keeping amounts in their original columns and reversing the sign on the amounts, you effectively “zero out” the original transaction.

After you complete the following procedure, a transaction is created that automatically reverses storno transactions.

Activate storno accounting

You must activate storno accounting in General ledger before you can set up storno parameters in any other module.

  1. Click General ledger > Setup > General ledger parameters.
  2. In the Ledger area, on the Accounting rules FastTab, in the Transaction reversal field group, set the Correction option to Yes.

Set up storno accounting

After you activate storno accounting, you can set up parameters in the application modules. The parameters that are specific to a module typically use storno accounting by default for various processes in the module. You can change the default setting when it appears on a page. However, the setting does not appear on all pages. Some pages always use the default setting during processing, and you cannot change the setting.

Set up storno accounting in Accounts payable

On the Accounts payable parameters page, in the Invoice area, set the Credit note as correction option to Yes. By default, credit notes are now posted as storno transactions.

Set up storno accounting in Accounts receivable

  1. Go to the Accounts receivable parameters page.
  2. In the Updates area, in the Advance invoice field group, set the Credit note as correction option to Yes. By default, credit notes for advance invoices are now posted as storno transactions.
  3. Set the Reversal as correction option to Yes. By default, reversals for advance invoices are now posted as storno transactions.
  4. In the Invoice field group, set the Credit note as correction option to Yes. By default, credit notes for invoices are now posted as storno transactions.

Set up storno accounting in Inventory and warehouse management

  1. Go to the Inventory and warehouse management parameters page.
  2. In the General area, in the Correction field group, set the Inventory adjustment – correction option to Yes. By default, adjustments to inventory are now posted as storno transactions.

Set up storno accounting in Project management and accounting

  1. Go to the Project management and accounting parameters page.
  2. In the General area, in the Adjustment field group, set the Adjustment of project transactions – correction option to Yes. By default, adjustments to project transactions are now posted as storno transactions.
  3. In the Journals area, in the Ledger posting field group, set the Negative transactions – correction option to Yes. By default, project journal entries that have a negative cost amount are now posted as storno transactions.

Create an Invoice storno credit note

  1. For a confirmed purchase order, on the Action Pane, click Invoice.
  2. Click Invoice.
  3. On the Action Pane, click Default from: Product receipt quantity.
  4. In the Default quantity for lines field, select an option.
  5. Click OK.
  6. Set the Credit correction option to Yes.
  7. In the Number field, type a value.
  8. In the Invoice date field, enter a date.
  9. Click Post.