Reverse Past Credit Balance Adjustment

Overview

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.

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.