3.0 PUBLISH Moving an invoice in AR after non-balancing reversals to balance and rebill:

Modified on Mon, 17 Nov at 2:20 PM

Moving an invoice in AR after credits/reversals to balance and rebill:

In this scenario, we have an original invoice, then when it was reversed the shipping was removed from the credit before being invoiced, so the balance of the credit is actually the amount remaining on the invoice. You want to remove that balance and rebill the correct amount.

First, you will want to reverse 310000663 and invoice that reversal. This will bring a credit for 31000.00 into AR Inquiry. We will apply it to the original later in the journal entry. This will basically net out the incorrect reversal we did with 310000663.

Once you invoice out that reversal, you can check your work and this should show up as a new line item in AR inquiry as an invoice for 31000.00

The next step, then, is to open a new invoice to issue the credit for shipping charges on a separate sales document. You will want to choose the same sales code that was used in the original, but it will be a negative amount.

When you finish with that, you can invoice the credit work order that should total out to 1,212. You should then see another separate line in AR inquiry with this credit showing.

Now, within AR inquiry we see that 310000654 can be paired with the two new invoices and the total of all those entries will be 31000.00. This reflects the correct balance for the customer.

Once we have those amounts in place, we can use a journal entry to bring them all together under the original invoice number.

Within the journal entry, it is important to remember that when posting in and out of accounts receivable, a positive amount in the journal entry will increase the AR on the AR inquiry and a negative amount will decrease the amount on AR inquiry.

(Negative is a credit, positive is a debit to AR). FOr this entry, then, you will post a positive AR to invoice 310000669 so that it will net to zero, and a negative amount to 310000654 so that it will also balance to zero.

Once this entry is posted, AR inquiry will be corrected and will reflect the following:

In this instance, then, the original invoice (xx654) has been fully credited and a correct invoice (xx668) with the correct amount has been billed to the customer.