The adjustment type selected in Adjust Receivables for invoices and cash receipts may be different depending on if you want the adjustment to affect the customer only, Accounts Receivable only, or billed information in Contracts. The following lists each adjustment type and its effects:
For Invoice Adjustments:

• Billed credit: Applies a billed credit adjustment to the invoice and decreases the billed amounts on the Customer, Contract, Contract Item and Job. This also reduces the revenue amount in General Ledger. Use this type when you want the credit memo to reduce the amount billed for the invoice. A Billed Credit will affect Contracts and Job Cost like a negative invoice. It will affect the Revenue and the Accounts Receivable accounts.
• Billed debit: Applies a billed debit adjustment to the invoice and increases the billed amounts on the Customer, Contract, Contract Item and Job. This also increases the revenue amount in General Ledger. Use this type to have the debit memo increase the amount billed for the invoice.
• AR credit: Applies a credit adjustment to the invoice but does not decrease the billed amount on the Customer, Contract, Contract Item or Job. It does affect the Write-off account from AR Settings in General Ledger. Use this type to reduce the receivable amount for the invoice without affecting the billed amounts.
• AR debit: Applies a debit adjustment to the invoice but does not increase the billed amount on the Customer, Contract, Contract Item or Job. It does affect the revenue accounts in General Ledger. Use this type to increase the receivable amount for the invoice without affecting the billed amounts.
• Bad debt: Applies a credit adjustment to the invoice but does not decrease the billed amount on the Customer, Contract, Contract Item or Job. This does affect the Bad Debt account from AR Settings in General Ledger. Use this type to reduce the receivable amount for the invoice without affecting the billed amounts and you want this adjustment to reflect as a Bad Debt write-off in General Ledger.
• Write off: Applies a credit adjustment to the invoice but does not decrease the billed amount on the Customer, Contract, Contract Item or Job. If this is a non-finance charge distribution, it also affects the write-off account from AR Settings in General Ledger. If this is a finance charge distribution, it also affects the finance charge write-off account from AR Settings in General Ledger. Use this type to reduce the receivable amount for the invoice without affecting the billed amounts. This is the only adjustment type available for retainage billed amount types.

For Customer Adjustments:

• Customer credit: applies a credit to the customer account, not to any specific invoice. Use this type to enter a customer credit that can apply to an invoice later.
• Customer debit: applies a debit to the customer account, not to any specific invoice. Use this type to enter a customer debit that can apply to an invoice later.

For Cash Receipt Adjustments:

• Refund: Use to reflect a refund for a cash receipt. This reduces the customer receipt balance on the Customer and makes entries to General Ledger. No entries are made to Cash Management. If you are using Accounts Payable, you must enter the refund check in Record Manual Checks. For more information on entering manual checks, see the Accounts Payable Help topics, "Entering checks written manually" and "About Refunds".
• NSF check: Reverses a cash receipt returned as non-sufficient funds. This makes reversing entries to the Customer, Contract, Job and General Ledger. An adjusting entry creates for Cash Management for the NSF check and its bank charge (if entered).