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Forward Compatibility and Invoice Adjustments

Describes how Forward Compatibility (FC) handles invoice-level Invoice Adjustments, including field behavior, key differences from Credit Balance Adjustments, and reverse-cancellation entry points.

Invoice Adjustments (IA) operate at the invoice level. Credit IAs generate Credit Memos and apply them to the source invoice. Charge IAs generate Debit Memos (handled as zero-balance carrying transactions).

The following table displays field mappings and behavior:

Field

Behavior in FC

AmountPreserved on IA; source for CM/DM item amount
Adjustment TypeDetermines whether Credit Memo or Debit Memo is generated
Reason CodeAuto-created/activated if missing under CM/DM type
Accounting CodeOVERRIDES source invoice item accounting code (key difference from Credit Balance Adjustments (CBA))

Key differences from Credit Balance Adjustments

Invoice Adjustments differ from Credit Balance Adjustments in the following ways:

  • IA Accounting Code OVERRIDES source item accounting code (CBA does not)

  • IA automatically selects the carrying source invoice item

  • Cannot update IA amount after creation

Reverse entry points

The following operations trigger reverse-cancellation of Invoice Adjustments:

  • Credit IA: Reverse-canceled when Credit Memo is unapplied

  • Charge IA: Reverse-canceled when Debit Memo is unposted