AR Credit Memo Journal Entry

Question

Hello,
We created an AR Invoice by mistake.  To correct this, we copied the AR Invoice to an AR Credit Memo and added it.  However, the journal entry created by the AR Credit Memo was not the exact opposite of the AR Invoice.  The AR Credit Memo journal entry had a different amount in the sales revenue account.  Because of this, when you run the account balance for the sales revenue account, you see the amount for the invoice and then for the credit memo but they do not cancel one another.  Instead, it leaves a balance on the account event though we do not want it.
Why would the credit memo not reverse the invoice exactly per the g/l?  Could this somehow be related to account determinations? 
Your help is greatly appreciated.
Thank you,
Amanda

Answer 1

Hi Gordon,
I don't think the difference is caused by exchange rate differences.  The credit memo was created about five minutes after the invoice.  They have the exact same dates.
Below are the journal entries for both documents to help clairfy:
AR Invoice
BP Acct                            DR $13,428.00
Sales Revenue                                         CR $13188.00
Net Pallet Deposit Liability                        CR $240.00
COGS                               DR 9609.60
Inventory Finished Goods                          CR $9609.60
Pallet Inventory                   DR $195.00
Pallet Inventory                                        CR $195.00
AR Credit Memo
BP Acct                                                  CR $13,428.00
Sales Revenue                    DR $13,428.00
Inventory - Returns              DR $9609.60
Pallet Inventory                                         CR $195.00
Net Pallet Deposit Liability   DR $195.00
Like I said, we just copied the AR Invoice to the AR Credit Memo.  We did not change the line items or the prices, etc.
Your help is appreciated.
Thanks,
Amanda