The following table shows what occurs when a credit, write-off, refund or overpayment is voided or deleted.  The option to Void versus Delete is set under the Allow Deletion for Days of Finance, General Settings.  If the Allow Deletion for Days is set to 0 (Best Practice) then Void is the only option.  Delete removes history from the database, and therefore, is not recommended as a financial tool.  See Configure Default Finance Settings for more information. 

Accounting Processes

Accrual accounting processes are impacted when credits, write-offs, refunds and overpayments are used. 

Credits:  Reverse a transaction.  

• Accounts Receivable credited
• Revenue debited
• Deposit Account credited

Write-Offs:  Reverse a transaction.  It is generally thought of as Bad Debt.

• Accounts Receivable credited
• Revenue debited
• Deposit Account credited

Refunds:   Reverse a payment.  There is an option to write-off the open balance or leave an invoice open.

• Accounts Receivable credited
• Revenue debited
• Deposit Account credited

Overpayment:  Overpayments can be applied from the Billing tab of a contact.  Overpayments can be applied to any invoices selected.  Once applied, making an adjustment to an overpayment can only be done to payments that have not been deposited.

Related Articles

Void an Invoice

Void a Payment

Delete an Invoice

Delete a Payment

Best Practice versus Standard Actions on a Transaction: What Can and Cannot Be Done