Damaged goods the customer keeps

• 5 units of ITEM001 arrive damaged. The customer keeps them rather than shipping them back, and you agree to credit them in full. You set the line's Inventory Handling to Credit + Write Off Stock.
• On posting, the same mechanism as A duplicate invoice, corrected happens: your original +5 unit entry, plus an automatic internal -5 unit entry. The only difference from A duplicate invoice, corrected is that the internal entry is tagged as a "Negative Adjustment" instead of a "Sale," for reporting purposes.
• Result: the customer/G-L side is credited $100.00 as usual, and on-hand inventory for ITEM001 is unchanged, exactly as in A duplicate invoice, corrected. This is the correct, intended result, not a limitation. The item's original sale already reduced inventory when it was first sold; this credit memo only needs to cancel the automatic physical "return" Business Central would otherwise assume, not remove stock a second time. See Known limitations for the full reasoning.