Clear Outstanding Invoices (in Accounts Receivable)

The Clear Outstanding Invoices option in Accounts Receivable cancels (reverses) the remaining balances for selected detail lines on outstanding invoices for a customer, including invoices that have been partially paid.

With the Clear Outstanding Invoices option, a copy of the original invoice is created, containing only the cancelled detail lines using negative amounts in order to reverse entries originally posted to General Ledger, if applicable; the original invoice detail lines are not deleted.  The invoice that is created as a negative copy for the cancelled detail lines is renumbered to start with a R* to indicate it was created to reverse the cancelled invoice detail lines.  For example, if invoice number 1234 for a total of $500.00, with two detail lines for $250.00 each, had one of the detail lines cleared, the original invoice would remain in the system as is and then a second invoice would be created as invoice number R*1234 for a total of -$250.00 for the one cancelled detail line.

Note:  The amounts for cleared invoices, including both the original invoice amount and the cleared (reversed) invoice detail line amounts, are included in the customer balances and will print on the statements for the appropriate months in which they were cancelled.

Steps to Clear Outstanding Invoices

Clear Outstanding Invoices (in Accounts Receivable) Tutorial

Note:  In order to view the tutorial, you must have an active Internet connection, along with a sound card and speakers installed on your computer.