Tip of the Day: In Microsoft D365 Finance and Supply Chain (D365 F&SC), to see how to create a Credit Note for a Sales Order, follow the steps below.
To create a credit note for a sales order, go to Sales Orders > Sell > Create > Credit Note.
Select the Sales Order and Lines that you want to credit > click OK
Note: This pop-up is controlled by the setting in AR Parameters > Updates > Safety level of invoiced orders
The original sales order status went from Invoiced to Open Order and the line was added the sales order with a negative quantity.