Accounts Payable Certification Practice Test

If you accidentally paid an invoice using the Create Payment flow, can you undo the operation?

1. Cancel the invoice and create a new one

2. Yes, by creating a credit memo

3. Yes, by canceling the payment process

4. No

The correct answer is: Yes, by creating a credit memo

When an invoice has been accidentally paid, the best method to rectify this error is by creating a credit memo. A credit memo essentially serves as a document that negates or adjusts the amount due on the original invoice. This is particularly useful because it maintains a clear and accurate transaction history in the accounts payable system. Creating a credit memo effectively reverses the financial impact of the original payment, allowing you to correct your records without needing to cancel the initial invoice and start the process anew. This approach preserves the integrity of the financial documentation and offers a straightforward way to adjust the accounts without complicating the existing payment and invoice records. While you might consider canceling the payment process or the invoice, these options do not typically provide a clear solution, as they may not adequately reflect the transaction history or leave behind the necessary documentation of the initial transaction. Therefore, generating a credit memo is a widely accepted practice in accounting for addressing overpayments or correcting payment mistakes in a seamless manner.