There is no invoice, just a journal entry increasing the balance in the A/R account and then another journal entry reducing the balance in the A/R account by the same amount.
@SSMGC
A journal entry that increases A/R will show up under Outstanding Transactions when you go to Receive payments (New > Receive payment). The credit will show under Credits. You can apply the credit there. Sorry about the confusion. Yeah, technically it's not an invoice but the journal entry is closed out the same way as an invoice.