Regarding Credit Memos, I have a customer asking what is best practice if you issue a credit memo to a customer and then at a later date discover that creating the CM was an error? I.e. customer reports short ship…. Issue Credit Memo…. 2 weeks later the customer reports they received the remaining items and will be paying the entire invoice. Do you delete the CM? What if this crosses an accounting period?

Someone might chime in differently, but I believe the method would be to delete the credit memo. If it crosses an accounting period, you might want to check with the accounting department first. They may journal it out or want a different approach. But deleting the CM makes sense. Then you can finish out the invoicing.

If the period is closed, (with non-GL changes allowed) you can still unapply a CM, so you could unapply it from the invoice and then maybe apply the CM to a JE to close it out, and now the invoice is open for payment again. If you don’t allow non-GL changes for some reason, I think you’d just have to re-invoice which can be a pain depending on how your invoices are generated.

Thanks for the replies…. These two replies encompass pretty much what I was thinking…. Inter-period just delete the CM. it never should have been there so this works. Cross period (if closed) re-invoice. I would not want to recommend deleting the CM cross period even if allowed.