Hello. I have a situation where a credit memo was incorrectly created by a user. This CM went unnoticed and as a result a revenue arrangement was created and revenue has been posted in a closed period. What is the best practice to reverse this impact and close at the credit memo? Would it be to create journal to reverse the impact of the revenue arrangement posting and then a second journal to write off the credit memo?

Best practices would be to un-apply credit memo, but of course it is in a closed period. The only way to fix it now is what you suggested. To prevent it from happening again I would enable Return Authorization and set them with Pending Approval status as default.

Thank you!

Is it bad practice to create a dummy invoice to reverse the CM? We had this situation and I just hate JEs being applied to transactions.