Cancelling an invoice

The Cancel Invoice function should be used when you wish to return all transactions on an invoice to billable again e.g. in order to make some changes to them.

The Cancel Invoice function locks the invoice, changes its status to cancelled, sets its open amount to zero and returns all transactions and expenses on the invoice to the preliminary invoice with a status reviewed. The invoice is always returned to a preliminary invoice even though the power user had enabled bypassing the preliminary invoice phase in the settings. In case the required changes are not doable in the preliminary invoice, it can be rejected.

When an invoice is cancelled, a credit invoice of the same amount is created for accounting purposes. It can be found in the Credit Invoices folder of the invoice window. A credit invoice which has been created when selecting the Cancel Invoice function cannot be cancelled.

Crediting an invoice 

A credit invoice is used to refund all or part of an invoice in situations where the work will not be re-invoiced. The reason for the credit may be, for example, a customer complaint that results in a discount being granted on the invoice.

Crediting is always done through a normal invoice using the Create Credit Invoice function.

1. Always start by selecting the invoice for which you want to create a credit invoice and select Create Credit Invoice on the ribbon.
   
   
2. Select one or multiple invoice rows that should be credited. The software now calculates the amount to be credited by summing the rows. The summed amount is filled in to the “Amount to be Credited” fields and Gross / Net Credit rows.
   • If amounts are changed manually in the “Amounts to be Credited” fields, the defined amount will be credited from the selected rows.
3. Credit either the entire invoice (total credit) or make a partial credit.
   • If you make a total credit, the registrations remain with the status Invoiced, so you can no longer invoice them from the customer. 

An invoice that has already been fully paid can also be credited. In that case, the payment’s adjustment needs to be cancelled before a credit invoice can be created. When crediting a fully paid invoice, the total amount of the invoice will be negative by the amount of the credit, and a payment refund must be made on the invoice. The Payment Refund function corrects the open amount of the invoice to zero and is displayed in the Payment report.

Enter in the Payment Refund window the required information. The entry date should be the date when the payment is concretely transferred from the company’s bank account to the customer. 

Editing, cancelling, and sending credit invoices

For a created credit invoice, you can still edit its entry date by selecting the "Change Credit Invoice Entry Date" function on the ribbon. The credit invoice date can be modified unless the new date is on a closed fiscal period.

If needed, you can also change the texts for the invoice rows by opening them separately in the Invoice Rows folder.

A credit invoice can also be cancelled if it has been created with the "Create Credit Invoice" function. If the credit invoice has been created because of an invoice being cancelled, cancelling the credit invoice is not possible.

You can send the credit invoice as an e-invoice or email attachment directly from the software. Under the Print button, you’ll also find the functions to print the credit invoice to a printer or to a PDF file. If needed, you can also create bookkeeping or invoicing material of the credit invoice.