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Reverse past credit balance adjustment

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Reverse past credit balance adjustment

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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 accounting period is closed. 

For example, you have an invoice with open balance of $100. You accidentally 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 before 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 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. 10 USD to the credit balance, the balance of the invoice is 100 + (-40) + 10 = 70 USD. Now, if the user wants to cancel the first credit balance adjustment, which is $40. It will make the invoice balance be 100 + (-40) + 10 + 40 = 110 USD. It means the invoice balance is greater than the invoice amount. So this operation is not allowed.

Reversing a past credit balance

Perform the following steps to reverse a past credit balance:

  1. Navigate to Customers > Customer Accounts in the left-hand navigation.
  2. Find the target customer account and open the account detail page.
  3. Click the three vertical dots icon to show more applicable actions and then click Transfer to Credit Balance.
  4. Specify the amount to be transferred with other appropriate fields as needed.
  5. Click Transfer to Credit Balance.

View credit balance activity

Open the customer account detail page and scroll down to the Transactions section. You can see the credit balance activity on the Credit Balance tab.