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.

When an invoice is cancelled, the system automatically creates a credit invoice. However, the impact of the Cancel Invoice function is different from crediting an invoice with the Create Credit Invoice function.

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.
 

Changing payers on invoices that have already been sent

If the invoice has already been printed or sent you may still need to change the payer on the invoice. Sometimes this is necessary when the customer informs you about the need to print the invoice for another department only after receiving the invoice.

To change the payer, follow these steps:

1. Cancel the invoice where the payer should be changed
2. Go to the preliminary invoice and, if no other changes are required, mark it as approved.
3. In the Payers folder of the preliminary invoice, select the Change Payer function on the ribbon.
   
4. The software opens a new payer window where you can select any customer defined as a payer on the matter. If the matter doesn’t have any other payers, the software informs that there are no payers that can be selected. In this case, open the matter and first add the customer as a matter party with the payer role after which you can select the customer as a payer for the preliminary invoice.
5. The software will add the new payer as a party to the matter and ask if you want to move the payer percentage from the old payer to the new one:
   
6. The new payer will be added to the preliminary invoice and the old payer removed from the preliminary invoice. NOTE! If it’s set in the business unit parameters that all customer identifications must be done before an invoice can be created, you need to complete the customer identification for the new payer before creating the invoice.
7. Create the invoice again by selecting “Create Invoice” on the ribbon.

This function can be used even in the case where a matter has multiple payers and only one payer needs to be changed. In that case, cancel the specific invoice, open the preliminary invoice, and approve it. Go to the Payer folder of the preliminary invoice where  the Change Payer button will be active only for payers whose invoice has been cancelled. When the payer has been changed, you can create a new invoice for that specific payer by selecting the payer and “Create Invoice” on the ribbon.