Cancellation of an Invoice - Simplicity version

Scope and Purpose

This document provides a summary of the invoice cancellation process, ensuring data integrity for accurate historical reporting.

Highlights

• Invoice Cancellation Process: The process is the same whether the invoice is dated in the current period or a prior closed period.

• Security Requirements: Users need security level 202 for current date cancellations and additional security for prior closed months or years.

• Best Practices: Typically, adjustments to posted invoices are made through credit notes or supplementary invoices to correct overbilling or include missed charges.

Invoice Cancellation Details

• Current Date Cancellation: All GL operations are based on the current date, maintaining a clear audit trail. This is ideal when an invoice was not sent to the client.

• Original Date Cancellation: Used for internal adjustments that cannot be handled by other corrective measures. The cancellation and new invoice are dated the same as the original invoice date.

Limitations

• Users cannot create an invoice with entries from a canceled invoice if the new invoice date is older than the last cancellation date for those entries.

Alternatives for Backdating Invoices

Option 1:

1. Cancel the invoice on the closest possible date.

2. Print and copy the affected entries as unposted entries into the timesheet.

3. Reverse the original entries with negative entries, resulting in a net impact of 0.00.

4. Reconcile and post the copied entries.

5. Create the new invoice dated prior to the last cancellation date.

Option 2:

1. Create a "No Time Invoice" dated prior to the last cancellation date with presentation entries.

2. Create a second invoice dated the last cancellation date with entries written down to 0.00, generating details for the no-time invoice.

Note: Option 2 will affect the member’s realization rate and allocation measures, but this can be adjusted manually.