Problem Statement

When a Purchase Receipt is posted with Expected Cost Posting enabled, Business Central creates expected cost entries against interim accounts.

If the receipt is subsequently undone, the current Undo Receipt process does not simply reverse the original receipt postings. Instead, it routes the transaction through the inventory costing engine, effectively realizing and then reversing the related costs. This results in multiple additional G/L entries being generated during the undo process. This results in the accounting flow is more difficult to understand and reconcile.

Business Impact

From an accounting perspective, users often expect an Undo Receipt operation to reverse the original Purchase Receipt postings as directly as possible.

The current behaviour can:

• Generate a larger number of G/L entries than expected.
• Increase complexity during financial review and reconciliation.
• Create confusion for accountants attempting to understand the relationship between the original receipt and the undo transaction.
• Require additional explanation and training for finance teams.
• Lead customers to question whether the generated entries are expected or indicate an issue.

Although the final accounting result is technically correct, the posting flow is not always intuitive to end users.

Proposed Enhancement

Provide an optional setting that allows Undo Receipt to directly reverse the original expected cost/interim postings when no invoice has been posted and when accounting consistency can be safely maintained.

Expected Benefit

• Improves accountant understanding and auditability.
• Reduces confusion around Undo Receipt transactions.
• Simplifies reconciliation efforts.
• Reduces support cases related to unexpected additional G/L entries.
• Improves user confidence in inventory costing processes.