Select the valid setup that creates the revenue account distribution in the case of a debit memo reversal.

Select the valid setup that creates the revenue account distribution in the case of a debit memo
reversal.

Select the valid setup that creates the revenue account distribution in the case of a debit memo
reversal.

A.
Auto Accounting Rule for revenue line type

B.
Revenue Account Specified in Debit Memo transaction type

C.
Cash account on the receipt

D.
Revenue account of the original transaction to which the receipt is applied

Explanation:

With debit memo reversals, the debit memo transaction type provides the receivable account
distribution, and the cash account on the receipt is used as the revenue account distribution.
Note:
When you create a debit memo reversal, Receivables creates the accounting entries on the new
debit memo transaction rather than on the original receipt. This ensures that you do not make
duplicate entries, and eliminates the need for a clearing account.
With regular debit memos, AutoAccounting creates both the receivable and revenue account
distributions. With debit memo reversals, the debit memo transaction type provides the receivable
account distribution, and the cash account on the receipt is used as the revenue account
distribution.

Debit Memo Reversals: Points to Consider, Accounting for Debit Memo Reversals



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Neha Jain

Neha Jain

Answer C : With debit memo reversals, the debit memo transaction type provides the receivable account distribution, and the cash account on the receipt is used as the revenue account distribution.