Credit Memo to Deferred Revenue is not amortizing correctly

We issued a Credit Memo to a client related to an invoice that was originally deferred over 80 months straightline. When we issued the Credit Memo it is not taking debits to Revenue until 3 years down the road. When in fact it should be debiting Revenue for the Credit Amount divided by 80 months equally until the end of the amortization period.
The Credit Memo is essentially pushing the negative Revenue to the back end of the amortization period, while continuing to fully recognize Revenue on the original invoice up until that point. You can see how this could dramatically overstate Revenue if we did this with any regularity and with large enough Credit amounts.
Have any of you seen this before? I would really appreciate any insight.
Thank you.

Hello Eliana,
Its unclear in your thread, how you are going to do it.
For creating an invoice / credit memo, you have to refer either a PO/schduling agreement / delivery note (migo).
In all the cases, it will get linked with the PO - MIGO.
What you have to understand is the functionality and the posting that will happen.
If you select
Invoice / credit memo - GR/IR clearing account and vendor account
Subsequent credit/debit - Stock account and vendor account
The difference in posting has its own significance. It will affect the MAP if your material price control is V.
If qty and value variance is there, use the functionality invoice/credit memo.
If only price variation - use subsequent credit/debit.
Regards
Gregory Mathews

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