Invoice cancellation

   If the invoice has been paid already, they can not be deleted directly from the Invoice Workbench. The paid Invoice which is validated and matched to PO already can be cancelled through Action button which is done inside of Invoice. But before Invoice cancellation the following steps should be followed, as there is related payment and bank account reconciliation to this payment.

Steps for Invoice cancellation:

• Find Invoice
• Review Invoice
• Check the period
• Check if prepayment exists
• Check if the invoice is paid
• Unreconcile the payment if you are using CM
• Void the payment
• Unapply the prepayment
• Cancel the Invoice

In order to start cancellation process, ‘Allow Adjustments to Paid Invoices’ should be enabled from Payables Options:

Step 1:  Find Invoice using Payables Manager or AP Accountant responsibility:

Search the Invoice you want to cancel by clicking search button from the main Menu. Type the Invoice number:

Step 2 and 3: See the paid amount of the Invoice from ‘Amount Paid’ box. It is necessary to check the GL date for the Invoice, as it should be open period to be cancelled, otherwise the system will not allow you to process.

Step 4: It is necessary to check if Prepayment exists for this Invoice and if it has been applied. Copy the prepayment number from ‘View Prepayment Applications’ tab box.

Search for Prepayment by typing the Prepayment number to Invoice search box.

See the Prepayment status which is ‘Fully applied’.

Note*: When the prepayment is applied to an Invoice, Payables automatically creates payment for the Invoice and prepayment and changes the status of Invoice to Paid which reflects the invoice as being paid by the prepayment.

Step 5: Check the payment number from ‘View Payments’ tab box.

Note: This payment number is for the Invoice as well, as when the prepayment is fully applied the invoice is being considered to be paid automatically.

You have access to see payment order related to the Invoice and Prepayment from inside the Invoice (or Prepayment) by clicking on ‘Payment Overview’ box or you can copy the payment number and search it from the Payments itself.

Note* : When you click on ‘Payment Overview’ box, you can directly see all details of payment as well as the status of Payment order which is ‘Cleared’ in our case.

Find the Payment which you need to void:

To void the payment you need to click on Actions button and void it. But when the status of Payment Order is in ‘Cleared’ status which means first it has to be unreconciled from CM module for ‘Void’ button to be active.

Step 6: In order to unreconcile the payment order, you need to switch off to CM Accountant responsibility and find bank statement where this payment was reconciled.

Note*: The bank name which this payment has been paid to is reflected in payment order. You need to check the bank name where it has been paid and search according to this bank.

Search according to bank account number or GL date:

When you find the payment that you want to unreconcile, it is necessary to click on’ Reconciled’ button and finish the unreconciliation process.

Tick the box on the left and choose the Payment which needs to be unreconciled:

Step 7: The unreconcilation process has been finished. Now switch off to AP Accountant responsibility and find the payment from Payments window to void it.

Click on Actions button and void the payment.

Step 8: Now go inside the Invoice and unapply the Prepayment by clicking on Actions button.

Step 9: Now you are ready to cancel the Invoice after you have unapplied prepayment, unreconciled and voided the payment related to this Invoice.

Note*: When Invoice is cancelled, the amount of Invoice is set to zero. It means the Invoice will be there, but it will not be reflected in any accounting analysis as the account will be zero.

The Invoice will exist but the status will show as ‘Cancelled’.