Credit + Write Off Stock

The customer and G/L are credited, for goods that are not coming back. On-hand inventory is unaffected, the same as Credit Only - see Known limitations for why.

Use this option when:

• The goods arrived damaged or faulty and the customer is keeping them, discarding them, or you've told them not to bother returning something not worth the freight
• The goods were lost or destroyed in transit and will never reach you

Credit + Write Off Stock: on-hand inventory is unchanged, exactly like Credit Only; this is correct, not a bug. Testing confirmed on-hand nets to zero, the same as Credit Only. Why: the goods behind this option already left inventory in their original sale, which already reduced stock at that time. The customer never ships anything back. The only correction this credit memo needs to make is cancelling the automatic physical return Business Central would otherwise assume, not removing stock a second time, which would double-count a loss that only happened once. The only real difference between Credit Only and Credit + Write Off Stock is an internal tag on the transaction that lets inventory reports later distinguish "credited as a genuine return" from "credited but written off as damaged" (see Reporting); it doesn't change the stock count either way.