You can reverse a previously made credit balance adjustment, by creating another credit balance adjustment to counter the effect of the previous adjustment, even in a closed accounting period.
This feature is in Limited Availability. We are actively soliciting feedback from a small set of early adopters before releasing as generally available.
Reverse Past Credit Balance Adjustments
You can reverse a past credit balance adjustment even if the the accounting period is closed.
For example, you have an invoice with open balance of $100. By accident, you apply $30.00 from the credit balance, making the new balance $70.00. You realize your mistake and reverse the amount, by transferring $10 to the credit balance, making the new invoice balance $80.00.
Consider the following prior to reversing a credit balance adjustment:
- Invoices with a positive balance:
- The amount transferred cannot exceed the amount applied from the credit balance.
- Can only be transferred after it’s been applied from the credit balance.
- Invoices with a negative balance:
- Can be only be transferred after it’s been transferred to the credit balance.
- The amount applied cannot exceed the amount transferred to the credit balance.
- A credit balance cannot be applied if the balance is zero, regardless If the invoice is positive or negative.
- A credit balance adjustment transaction cannot be canceled.
For example, you have an invoice with an open balance of $100.00, $40 of which is applied from the credit balance, bringing the balance to $60. 10USD to Credit Balance, the balance of invoice is 100 + (-40) + 10 = 70USD. Now, if user wants to cancel the first CBA, which is 40USD, it will make invoice balance is 100 + (-40) + 10 + 40 = 110USD. Meaning invoice balance is greater than invoice amount. So this operation is not allowed.
Reversing a Past Credit Balance
Perform the following steps to reverse a past credit balance:
- Navigate to Customers > Customer Accounts in the left-hand navigation section.
- Select an account.
- Select Transfer to Credit Balance from the more drop-down.
Enter the information in the appropriate fields.
- Click transfer to credit balance.
Viewing Credit Balance Activity
You can see the credit balance activity by clicking on the Credit Balance tab under Transactions.