On-account credit memo in AR needs to reverse accounting entries from original invoice
We are importing customer credit memos from an external application through FBDI using AutoInvoice. These credit memos will not contain an invoice reference for direct application, but once the credit memos are imported the user will manually apply the credit memo against the invoices through Manage Credit Memo Applications.
When we account the credit memo after application, the revenue account is taken from the distributions (AutoAccounting transaction type). The receivables account is corrected to the distributions on the invoice. We need the revenue accounts also to be updated.
111 Receivables DB
333 Revenue CR
Credit memo accounting
444 Revenue DB