Field Notes
Credit notes that never reverse the original application
Vendor credits issued in good faith sometimes sit unmatched while the original invoice remains fully applied.
Credit notes fail quietly. A vendor issues a credit for damaged goods; AP files it; the original invoice stays applied in full because the clerk is waiting for a replacement delivery that never needs a new invoice.
In sampling, we sort open credits older than sixty days and force a decision: reverse the original application, reclassify, or document why the credit remains open. Leaving them in a suspense bucket until “after year-end” is how profit gets a temporary lift that auditors later unwind under time pressure.
If your ERP allows on-account credits, print a weekly aging for the controller. The report is dull — and usually more valuable than another motivational close-week reminder.