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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / What's a differenc...
Microsoft Dynamics GP (Archived)

What's a difference between a Credit Memo and Invoice that Credit AR

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Posted on by alexduy 355

Instead of creating a Credit Memo in the AR Module, my AR Manager sometimes
create an Invoice, and instead of Debit AR when creating an invoice, she credits
the AR account, making it looks like a Credit Memo. Will doing this mess up the AR GL account vs the Aging? Please
advise.

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  • Suggested answer
    MichaelC Profile Picture
    MichaelC 1,763 on at

    If I recall correctly, you can't do a negative invoice, so you would be changing the posting accounts and possibly maybe switching distribution types in the distributions window. From a GL basis, it would account correctly, but a couple observations:

    1. Wouldn't you still end up with a positive invoice?

    2. I would recommend using a credit memo because this can be applied to an existing document.

    3. From a GL > AR reconciliation basis...you might run into an issue there. I would check that. On the Gl it would be correct, but your open AR maybe overstated by double since it's in the opposite direction.

  • alexduy Profile Picture
    alexduy 355 on at

    We use project accounting and I believe the reason why she is doing that is because she wants to be able to credit back the revenue to the right project number?

  • alexduy Profile Picture
    alexduy 355 on at

    I mean debit back the revenue

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