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We have a situation where a customer was cash in advance but they are now being granted terms. We entered in a couple of orders and created and posted Advanced Invoices, we cannot release the orders now due to the advanced invoices. Is there a way to cancel advanced invoices? 

Go to Customer Orders/Invoicing of Customer Orders/Customer Invoice - Query for your Advance Invoice and RMB in the header to Create Credit Invoice. Once the credit invoice is posted the posting will be correct.