Mostafa Ghanem Support engineer

In the global address book , when you create a relation type that is a "Any to organization" we can't use this in an entity that is person as a relation, meanwhile the relation is an Any to organization which means that the A party could be ANY so we should be able to use this with a person or an organization as A party, but the actual that happens on that system that we can only use that when the A party is an organization.

and the same way goes to Any to Person in a relation.

When we have a tax combination " Group and group Item' with a sales tax code shared between them with a Zero Rate it throughs an error that the tax combination is not valid.

This happened because the result of the combination is Zero, so the tax code validation read the combination as a wrong one.

To resolve that we need to turn the toggle for "Check sales tax code " to None or Warning.

But this is not the best option as we need the validation when we have a wrong combination to prevent users from proceed also we need to use the Zero rate so we trace which transactions were posted using this VAT code >tracing error or missing tax transactions becomes easier.

So the suggestion would be to remove the Zero tax code form the validation as long as the setup for the sales tax code, Item and group is correct it should proceed as normal with no error. 

Background:

Currently, reversing a Free Text Invoice (FTI) in D365 Finance requires a manual workaround due to limitations in the reversal functionality. The reversal process does not generate a legally compliant credit note, particularly in terms of invoice numbering, referencing the original FTI and the reason for the reversal . This has led to increased manual effort, risk of human error, and non-compliance with EU invoicing regulations.

Customer Feedback Summary:

• The reversal function does not issue a legally correct invoice.
• Manual creation of credit notes is required, which is error-prone.
• Credit notes must have a unique invoice ID, as per EU law.
• Settlement between the original invoice and the credit note is not automatic.
• 
  

Proposed Enhancement:

Introduce a fully automated process for reversing Free Text Invoices that includes:

Legally Compliant Credit Note Generation:

• Ensure the credit note has a unique invoice ID.
• Maintain a clear reference to the original invoice.
• Automatically settle the credit note against the original invoice in the General Ledger.
• Eliminate the need for manual matching and reduce reconciliation errors.
• Provide a one-click reversal option that handles both document creation and settlement.
• Include audit trail and traceability between the original and credit note invoices.