USA Is credit and re-bill an outstanding invoice against GAAP?

[Accountingdummy]

Hi, I need your professional advice on credit and re-bill an old invoice, not sure if this practice is against GAAP. I used to work for a company that management allowed to credit and re-bill an old outstanding invoice with a new invoice date so that the old invoice got cancelled out and won't show on the current aging report, which might also reduce DSO. The management seemed to focus more on making the aging report clean and low DSO rather to chase the customer for payment. Is this practice in compliance with GAAP? I didn't feel comfortable about their practice and that was another reason I left the company. Can any one advise so I can gain some knowledge? Thanks!

 

[Bert82]

From my point of view i would say that kind of practise can't be legal as the intention is to obscure and to falsify the correct situation of days overdue.
Don't know where to find in (US-)GAAP, but in connection to IFRS I'd say that is not suitable to IFRS 7.18

 

[kirby]

Hi. As you said it is just a device to make the receivables aging look better. So you would call this changing the accounting records to reflect incorrect data, which is fraud by definition. You were smart to leave these crooks.