Cancellation

← Invoice Correction

You can cancel an invoice in case of formal invoice errors like a wrong recipient address or if a customer has returned a complete purchase. Canceling an invoice creates a credit with the reversed amount of the original invoice, this way revoking the original claim to your customer.

Canceling an invoice including all invoice line items, creating a credit for the complete invoice

Note

Be aware that in some jurisdictions (including Germany), credits and cancellations have different legal foundations and taxation effects, and must therefore be applied properly. For details on possible use cases, see Invoice Correction.

Invoice Cancellation in JustOn

Invoices in the statuses Open or Paid can be canceled.

Canceling an invoice

The following steps outline the lifecycle of the canceled invoice and the cancellation invoice.

When a user cancels an open or paid invoice, JustOn creates a new draft invoice of the class Credit and the type Cancelation. The new invoice includes all invoice line items of the original invoice with a reversed unit price.

Canceling a credit produces an invoice of the class Invoice and the type Cancelation.

When the user finalizes the cancellation invoice, JustOn will

• set the original invoice to the status Canceled and link the original with the cancellation invoice (Canceled with on the original invoice, Related with on the cancellation invoice),
• unlink any received payments from the canceled (original) invoice, assigning them to the account,
• set the cancellation invoice to the status Settled,
• create clearing balances for the canceled (original) invoice and for the cancellation invoice,
• "release" source object records billed with the original invoice (with a generic invoice run or usage data billing), making them subject to subsequent invoice runs again,
• with an active JustOn Cash Management integration, cancel the entry that is related to the canceled (original) invoice.

After the cancellation is completed, both the original invoice and the cancellation invoice have an invoice balance of 0 and do no longer affect the account balance.

Info

In addition to manually creating a cancellation invoice, you can set up a process to automate this operation.

Note

Be aware that you cannot cancel a cancellation. To undo a wrong cancellation, you repeat the original operation – that is, you create a new invoice for the originally invoiced items.

Canceling Invoices
Automating Cancellations
Invoice Correction

Bookkeeping Data for Cancellation Invoices

If the bookkeeping data generation is enabled, JustOn creates booking details as follows when finalizing a cancellation invoice:

• For each existing booking detail of the canceled invoice, JustOn creates a new, "opposite" booking detail – based on the original booking details and not on the produced cancellation invoice –, producing reverse and reversed booking details marked as Reversal (see Bookkeeping Data Reversal). This also applies to split booking details as a result from revenue recognition – for example, 12 booking details created for deferred revenue will produce 12 "opposite" booking details on cancellation.

  Combination rules, however, apply.

  
  Booking deferred revenue and a corresponding cancellation

  Be aware that by default, the new opposite booking detail includes only the original JustOn fields. If you need additional project-specific fields to be copied, you must use the custom setting Copy Additional Fields.

• For each existing booking detail of the canceled invoice, JustOn sets the booking date to the date of the cancellation invoice if

  • the booking period is Open,
  • the booking detail is not exported,
  • the booking date is after the date of the cancellation invoice.

  If the booking period for the date of the cancellation invoice (or a later booking period) is Closed, JustOn moves the affected booking details to the first day of the next open booking period.

  Booking details that already have been exported or transferred to DATEV remain unaltered.

• For the new, "opposite" booking details of the cancellation invoice, JustOn copies the adjusted booking dates of the booking details of the canceled invoice. That is:

  • It usually sets the booking date to the date of the cancellation invoice, too.
  • In case a booking period is Closed, JustOn also moves the affected "opposite" booking details to the first day of the next open booking period.
  • For the "opposite" booking detail of an exported booking detail, JustOn sets the date of the original booking detail (which remains unaltered).

• For booking details of the type Revenue, JustOn appends the related account number to the name of the new booking detail.

• For the amount of the new booking detail, JustOn sets the inverted amount of the existing booking detail.

• For the booking text of the new booking detail, JustOn prepends Cancellation: to the original booking text.

  This text is a custom label. If you need a locale-specific variant, provide a corresponding translation as described in Managing Custom Labels.