When a charge interest transaction is reversed, ResCenter also voids all tracking entries for the individual interest charges as if they have never been assessed. Consequently, the next time the interest charges are calculated, it will be for the time period starting the same date as the one for the reversed interest charges.
For example: If interest is processed for January, February, and March, then March’s charge interest is reversed, interest calculated in April will be assessed for only two months (January and February).
If a user wants to balance out the interest charge generated for a given month, a credit memo transaction can be created instead of reversing the interest charge transaction.
If an initial base charge is being reversed, then ResCenter will automatically issue the credit for each of the interest portions associated with the original charge (including compound interest). The comment in each of the Credit Memo transactions will indicate whether this is an adjustment to the original charge or to the compound interest. It will also include a reference to the original charge being reversed and to the compound interest(s) involved.
If the charge interest transaction being reversed is not the latest charge interest for the account, ResCenter will also automatically reverse all the charge interest transactions posted after that one.