System does NOT reverse or cancel the Deferred Accounting journal entries.

[mostafaradwann]

Important Note

Note: This Feature is related to LavaLoon project and is a high-priority task within an important project with Bulbaid Group Company in Saudi Arabia. **Please refer to this ticket number on frappe cloud 54877

Is your feature request related to a problem? Please describe.

When creating a Sales Invoice with Deferred Revenue enabled, ERPNext correctly generates the Deferred Accounting Schedule and the related Journal Entries.
However, when the Sales Invoice is returned (credit note issued), the system does NOT reverse or cancel the Deferred Accounting journal entries.
This leads to inconsistent GL balances and incorrect deferred revenue recognition.

Describe the solution you'd like
Step 1 — Create Sales Invoice

• Create a new Sales Invoice
• Add an item with Enable Deferred Revenue checked
• Set Service Start Date and Service End Date
• Submit the invoice
• System automatically creates a Deferred Revenue Schedule and posts Deferred Journal Entry
  Step 2 — Return the Sales Invoice

Open the submitted Sales Invoice

• Click Return / Credit Note
• Submit the return invoice

Actual Behavior

Previously created Journal Entries are NOT reversed
This makes the accounting remains incorrect, and the Income continues to be recognized even though the original sale has been returned

Expected Behavior

ERPNext should automatically reverse all posted Deferred Journal Entries related to that Sales Invoice.
This maintains accurate financial statements and prevents overstated revenue.