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Canceling Invoices

Certain business use cases require an invoice to be canceled. To this end, you create a cancellation invoice with the reversed amount, equalizing the invoice balance.

Info

In addition to manually creating a cancellation invoice, you can set up a process to automate this operation. For details, see Setting Up Cancellation or Finalization Using Processes.

Invoice Cancellation Concepts

Invoices in the statuses Open or Paid can be canceled.

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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, the system

  • creates a new draft invoice of the class Credit and the type Cancellation, and
  • links it to the original invoice, which is displayed in the field Credit for.

The new invoice includes all invoice line items of the original invoice with a reversed unit price.

When the user finalizes the cancellation invoice, the system will

  • set the original invoice to the status Canceled and link it to the cancellation invoice, which is displayed in the field Canceled with,
  • unlink any received payments from the canceled (original) invoice,
  • set the cancellation invoice to the status Settled,
  • create clearing balances at the canceled (original) invoice and at the cancellation 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.

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You can also cancel credits. This produces an invoice of the class Invoice and the type Cancellation.

The cancellation invoice uses the same invoice template as the original invoice. You can use the Cancellation template detail to override certain fields.

For help about working with templates, see Customizing Templates and Configuring Template Details.

Creating a Cancellation Invoice

  1. Open the Invoices tab.
  2. Click the invoice ID to open the invoice's detail view.
  3. Click Cancel.
  4. Specify the cancellation reason.
  5. Click Save.

Note

To complete the cancellation process, you must finalize the cancellation invoice (see Finalizing Invoices).