Delete or reverse the effects of an invoice—Order Entry

For OE sales invoices with a transaction definition that posts to Accounts Receivable, you can delete the OE sales invoice or reverse its effects if it can't be deleted.

About deleting or reversing an Order Entry invoice

On occasion, you might want to remove an invoice that was created in Order Entry. Maybe it was mistakenly entered or converted to with incorrect information. You have the following 2 choices for how to correct the invoice:

• Delete the invoice. Removes the invoice from the system, which lets you re-create it correctly.
• Reverse the effects of the invoice. Leaves the invoice in the system, which lets you track changes and maintain an audit trail.
  The Order Entry application does not have an explicit Reverse function like Accounts Receivable can have. Reversing the effects of the invoice is a process where you create a sales adjustment in Order Entry to zero out the invoice and then apply the credit to the AR sales invoice in the Accounts Receivable Receive payment function.

The action you take depends on a combination of the following factors:

• The Payment status
• The State of the transaction
• The transaction definition
• The Order Entry configuration

Delete an invoice

Deleting an invoice in Order Entry rolls back all the relevant data in the system to the state that it was in before the invoice was created. This rollback includes GL accounts, subledger accounts, revenue schedules, inventory effects, and so on. When you delete an invoice, you can then reconvert to the invoice to correct any information that was entered incorrectly.

The following table describes the conditions under which you cannot delete an invoice and gives possible solutions:

Condition	Possible solution
If the transaction definition Delete policy is set to No delete.	Change the Delete policy on the Transaction definition.
If you have previously printed a document for the invoice and the transaction definition Delete policy is set to prohibit the deletion of a transaction after a document has been printed.	Change the Delete policy on the Transaction definition.
If the invoice has been converted to another transaction.	Delete the downstream transaction. For example, if the invoice was converted into an adjustment transaction, delete the adjustment transaction.
If a payment has been applied to the invoice. You will receive an error message that a payment has been made.	Even if the payment is reversed, you cannot delete the invoice. In this scenario, see Reverse the effects of an invoice.
If the invoice has had Convert by line processed against it.	Delete the recurring template.
If revenue recognition is enabled and any of the revenue has been recognized from the schedules.	Clear out the revenue recognition (Order Entry).
If the fiscal period is closed.	Open the fiscal period. If opening the period is not an option, you can change the transaction posting date to be in an open period.
If the invoice is shared within a multi-entity company.	Shared invoices can only be deleted at the top level. If you display the invoice list at the entity level, you might see shared invoices. However, these invoices are listed as "Not owned" by the entity and the Delete option does not appear. If you have the appropriate permissions, go to the top level to delete the invoice.

To delete one or more invoices:

1. Open the applicable invoice list and find the invoices to delete.
2. Select the checkbox in the Delete column next to each invoice.
3. Select the Delete button. Depending on your user preferences, to confirm the deletion select OK.

Reverse the effects of an invoice

There are two actions required to reverse the effects of an invoice:

1. Create an adjustment transaction.
2. Apply the adjustment to the corresponding AR sales invoice in Accounts Receivable.

When you reverse the effects of an invoice, none of the previous transactions in the workflow are affected.

1. Create an adjustment transaction

An adjustment transaction is an Order Entry transaction where the transaction definition has been defined with the following attributes:

• Transaction posting is to Accounts Receivable.
• The Posting configuration is defined to credit Accounts Receivable and debit the appropriate GL accounts (the reverse of the Posting configuration for the transaction definition for the invoice).

This section describes how to:

• Create an adjustment transaction by conversion
• Create a stand-alone adjustment transaction

If your workflow includes more than one adjustment transaction, see your Intacct administrator for information on which one to use.

Create an adjustment transaction by conversion

1. In an Order Entry invoice list, find the applicable invoice, select Convert, and then select the adjustment transaction type to which to convert the invoice. For example, select Credit Memo.

   The adjustment transaction appears, displays all of the data from the invoice, and defaults the Date to today's date. This date determines the posting date for the adjustment.

2. Change the Date as applicable. The date for the adjustment is usually the same date as the invoice you want to reverse.
3. Leave the item, quantity, and price information as is and select Post.

   The credit is now available to apply to the AR sales invoice in Accounts Receivable.

Create a stand-alone adjustment transaction

If the invoice cannot be converted to an adjustment transaction, you can create a stand-alone adjustment transaction. You can create the adjustment in Order Entry or Accounts Receivable. The following procedure describes how to create a stand-alone transaction in Order Entry. To create the adjustment in Accounts Receivable, see AR adjustments.

To create a stand-alone adjustment transaction:

1. Go to Order Entry > All > Transactions and select Add (circle) next to the applicable adjustment transaction.

   The adjustment transaction appears.

2. Change the Date as applicable. The date for the adjustment is usually the same date as the invoice you want to reverse.
3. Select the customer from the Customer dropdown list. The customer needs to be the same customer that's defined on the invoice.
4. In the Entries table, select an Item that's defined on the invoice.
5. Enter the same Quantity and Price as on the invoice as positive values.
6. Repeat steps 3 and 4 for each item in the invoice.
7. Complete other transaction fields as applicable.
8. Select Post.

   The credit is now available to apply to the AR sales invoice in Accounts Receivable.

2. Apply the credit to the invoice in Accounts Receivable

You can apply a credit created from an Order Entry adjustment transaction to an invoice via the Receive payments function in Accounts Receivable. When you apply the adjustment against the invoice, the applicable accounting impact nets to zero and the invoice and the credit are removed from the Customer Aging report.

See Receive payments for instructions.