Reversing an Invoice Issued in Error

If you issue an invoice in error, you should process a credit note to back it out of the customer's account using the A/R Invoice Entry screen.

Important! Do not enter an adjustment to the invoice in the A/R Adjustment Entry screen, because any taxes included on the original invoice will not be reversed.

To enter a credit note:

1. Open Accounts Receivable > A/R Transactions > Invoice Entry.

2. Use the Batch Number field to select an existing batch, or create a new batch. More...

   To create a new batch:

   1. Click the Create New Batch button.

      Accounts Receivable assigns a new batch number. You can click the Details link beside the Batch Number field to view additional information about the batch.

   2. In the Batch Description field, type a description for the batch.
   3. Accept the session date in the Batch Date field, or type over the date if you want to change it.
3. Enter header information for the document on the Document tab. More...

   Header information includes:

   • The detail type.
   • A description for the document.
   • Customer number.

   • Whether the document is job-related. More...

     When you select the Job Related option, additional fields appear on the detail entry table, where you enter job-related information.

   • Whether the document is subject to retainage (a holdback). More...

     The Retainage option appears in A/R Invoice Entry only if you selected the Retainage Accounting option for your Accounts Receivable system. When you select the Retainage option, the Retainage tab becomes available where you specify the retainage terms for the document.

     If you have a multicurrency ledger, you also use the Retainage tab to specify whether to use the original exchange rate or the current exchange rate when you produce the retainage document.

     Retainage fields also appear in the detail-entry table where you specify the retainage percentage or retainage amount, retention period, and retainage due date for each detail.

   • Original Document. If you are processing a retainage credit note, specify the original document for which you are now processing retainage.
   • Document number. Accept the entry to have the program assign a number to the document.
   • The Apply-To Document (the number for the invoice you are crediting).
   • The document date (for aging and statistical purposes).
   • The posting date. The posting date determines the fiscal year and period to the document is posted in the general ledger.
   • Purchase order and sales order numbers.
   • Any special instructions regarding the invoice, credit note, debit note, or interest invoice.

4. In the detail entry table on the Document tab, add either of the following types of details:

   • Summary details. More...

     To add summary details:

     1. If this is a job-related document, enter the contract and project, and (as applicable) the category and resource.
     2. Enter the distribution code or the general ledger account number. When you move to another field, the description for the distribution code or account you enter appears in the Description field. You can change the description for the distribution code.
     3. Enter the amount. You can enter a negative amount, but the invoice total cannot be negative.
     4. If retainage applies to the document you are adding, enter the retainage percentage or amount, the retention period, and the retainage due date for this detail.
     5. Enter an optional comment, and indicate whether to print the comment when you print the debit note or credit note.
     6. If you use optional fields, click the Optional Fields field and check, change, or add optional fields for the detail.
   • Item details. More...

     To add item details:

     1. If this is a job-related document, enter the contract and project, and (as applicable) the category and resource.
     2. Enter the item number, unit of measure, quantity, price, and distribution code. You may enter a negative quantity, but the invoice total cannot be negative.

        If the detail is job-related, Accounts Receivable displays (as defaults) the A/R item number and the unit of measure for the specified resource (for standard contracts) or category (for basic contracts).

     3. Enter retainage separately for each detail. If retainage applies to the document you are adding, enter the retainage percentage or amount, the retention period, and the retention due date for this detail.
     4. Enter an optional comment, and indicate whether to print the comment when you print the invoice.
     5. Indicate whether the document discount applies to this detail.
     6. If you use optional fields, click the Optional Fields field and check, change, or add optional fields for the detail.
5. To check or change tax information for a detail, select the detail, and then click the Detail Tax button.
6. To check or change taxes amounts for the invoice, click the Taxes tab.

   For more information, see Editing Taxes on an Invoice, Debit Note, or Credit Note.

7. On a document from which retainage will be deducted, use the Retainage tab to specify terms for the retainage document.

   In a multicurrency ledger, you also specify the type of rate to use when you process the retainage.

8. If you use invoice optional fields, click the Optional Fields tab to view or edit the optional fields assigned to this invoice.
9. To allocate amounts to salespersons, use the Sales Split tab.

   For more information, see Allocating a Sale to Salespersons.

10. If the document does not use the functional currency and you need to adjust exchange information, use the Rates tab to adjust them.

    For more information, see Editing Exchange Rate Information on an Invoice.

11. Click Save to add the document to the batch.