Currently, the CRM only allows the cancelation of a credit adjustment when the adjustment is in Draft status. Now a user can cancel the adjustment at any point in time and clearly distinguish its billing status to determine if it has been partially or fully applied.
The CRM now shows a new field on the credit adjustment named Billing Status.
When the adjustment is Submitted, the billing status appears as Billed and the original Status is Submitted. The adjustment can now be canceled from the Actions button on the top right corner.
The Billing Status also appears as a column on the main Adjustments grid
When the credit adjustment is partially applied against a charge, the Billing Status shows as Partially Applied to accurately inform that a portion of it remains unapplied.
When the credit is fully applied, the Billing Status is updated to Applied.
In our case, the credit covered two charges. If one of those charges were to be canceled, the credit would revert back to Partially Applied. If both of them were to be cancelled the credit would revert to Billed.
The credit can be canceled at any point in time, regardless if its associated with charges or not. When the credit is created it creates journal entries. If system has been configured to include a sales tax, upon creation of the credit two entries are created, one for the sales tax and one for income. These entries are of Activity Type, Lease Credit Adjustment.
If system is not configured for sales tax, only one entry is created impacting Income and AR.
When the credit is canceled, system creates entries to reverse the original ones. In our case system created two entries of Activity Type, Reversal Entry, to balance the books. If Sales Tax was not configured, only one entry would be created, impacting Income and AR.