What hapens if credit memo is applied after the receipt is applied full for an AR Invoice

Hello,

I have a query from customer on the project invoices which are created in projects interfaced to AR and receipt is already applied to invoice in AR.

Now if I am creating a credit memo against that invoice in Oracle Projects and interfacing that to AR, the questions is

 

1.       Can credit memo be applied to AR invoiced which are already applied with receipt fully

2.       If it can be applied how is the accounting treatment happens in this case i.e. what happens to the credit amount as the invoice is applied full receipt

Regards,

Rajiv