Some firms need a way to reverse a finalized invoice that falls inside an accounting period they've already closed - once a period is closed, voiding isn't an option. Credit Invoices is built for exactly this case.

When this feature is turned on for a firm, Factor recognizes a closed accounting period - either QuickBooks Online's own "books closed as of" date, or a closed-period date the firm sets directly in Factor (whichever closes through the later date applies). If an invoice falls in a closed period, Factor blocks voiding it and offers crediting instead. Crediting creates a credit memo in QuickBooks, marks the invoice as Credited, and returns its billed time entries and expenses to an unbilled status so they can be added to a future invoice or written off. The original invoice record and any payments already applied to it stay intact.

The Credited Invoices feature is not turned on by default for every firm, and a Factor Product Specialist will need to turn it on by request.