Reverse an invoice

Reversing an invoice creates a reversal transaction that updates your Accounts Receivable and customer balance. Use this when an invoice was issued in error or needs to be undone.

Reverse an invoice when:

• The original invoice was created incorrectly (wrong amount, wrong customer, etc)
• You need to undo a billing transaction that has already posted.

Important:  Invoice reversals can not be undone. Use invoice adjustments to fix minor billing errors. This maintains invoice history while correcting the financials accurately.

To reverse an invoice, go to the Accounts Receivable menu, then Transaction List and select Reverse Invoice in the Invoice Actions drop-down menu.

Reverse latest invoice

Enter the below into the Reverse Invoice wizard.  Click Save to process the reversal. 

• Invoice number - select the first invoice from the dropdown list.
• Internal notes - enter an internal note to record the reason for the reversal. 
• Send correspondence to customer - select yes to send correspondence to the customer
• Customer explanation - enter a message explaining why the invoice was reversed. This is required if you have selected yes to send correspondence, as the message is populated into the corespondence.

Reverse multiple invoices

You can reverse multiple invoices by selecting the invoice you would like to reverse back to. All invoices back to the selected invoice will be selected and reversed.  To reverse multiple invoices in a batch, enter the below into the Reverse Invoice wizard.  Click Save to process the reversal. 

• Select the invoice you want to reverse back to.
• All invoices from that point backwards will be selected and reversed together.

This is useful when undoing a series of transactions up to a particular point.

What happens when an invoice is reversed.

• A reversal transaction is created for the selected invoice.
• The customer balance is updated accordingly.
• Any internal note you entered is recorded against the reversal (not visible to customers).
• If Send correspondence to the customer is selected, an email or letter (customer preference) will be sent to the customer that includes the customer explanation and any invoice reversal documents if available.