Invoice Credit, Purge, and Reverse Utility Overview

This topic provides an overview of the Invoice Credit, Purge, and Reverse Utility.

Overview

In the event that an order invoice is generated in error, you can use the Invoice Credit, Purge, and Reverse Utility to negate the result of the invoice in the system. Depending to what degree the invoice is posted, you can choose different reverse and credit options.

Note:  The purpose of this utility is only to undo the effects of invoicing. Any invoices generated against a reversed order will follow the normal invoicing business rules.

With this utility, multiple business scenarios can be met when an invoice has been created but later is found to need a change:

  • Adjusting an SRO or Sales Order (after Invoice Posting): The Invoice Credit, Purge, and Reverse Utility will be used to create an A/R credit memo and automatically apply it to the invoice in A/R. An option on the utility will also be used to undo the effects of the invoice on the SRO or Sales Order. This will leave the SRO or Sales Order in a similar state to how it was before the invoice was generated. The changes can be made to the transactions as needed, and then a new invoice can be generated. Note: The original invoice in this scenario will be broken apart from the SRO and will be treated as an A/R invoice. Reprints will not be possible through SRO invoicing.
  • Adjusting through A/R (after Invoicing Posting): The Invoice Credit, Purge, and Reverse Utility will be used to create an A/R credit memo and automatically apply it to the invoice in A/R.
  • Adjusting a Contract (after Invoice Posting): The Invoice Credit, Purge, and Reverse Utility will be used to create an A/R credit memo and automatically apply it to the invoice in A/R. An option on the utility will also be used to undo the effects of the invoice on the contract. Changes can be made to the contract dates and rates, and then a new contract invoice can be generated.
  • Removing the Invoice (prior to Invoice Posting): Prior to invoice posting, the Invoice Credit, Purge, and Reverse Utility can be used to purge the invoice from the system and reverse the effects of the invoice on the order or contract. The original invoice will cease to exist, and no credit memo will be necessary.

Reversing a Contract, Sales Order, or Service Order

Service Orders and Sales Orders: Any data change which occurs upon invoicing will be undone, such as close date, SRO, line status, operation status, billing status, tax, freight and miscellaneous charges, discounts, commissions (if not paid) and deposits.

Service Contracts: Any data change which occurs upon invoicing will be undone, such as bill through date (set back to start date of contract being reversed), amortization records (if not posted), and commissions (if not paid). If the contract header is closed, you will receive notification upon running the utility and must reopen the contract manually.

Note:  Due to the complex nature of the Invoice Credit, Purge, and Reverse Utility, these restrictions apply:
  • WIP Relief: Any WIP associated with an order for which an invoice is being reversed will not be affected. If a change to WIP needs to occur, you should handle it manually using new transactions which will be relieved through the invoicing process.
  • Commissions Paid: An order cannot have its invoice reversed if the commission associated with the sale has already been paid.
  • Contract Limitations:
    • Only the most recent contract invoice can be reversed.
    • If the contract has any posted amortizations associated with it, then it cannot be reversed with this utility. The posted amortizations must be undone manually, and then the utility can be used.

Crediting an Invoice

If the credit invoice option is chosen, then an A/R credit memo is created and tied to the original invoice number.

Purging an Invoice

When this option is chosen, all record of the invoice is removed from the system. This option is only valid when A/R Invoice Posting has yet to occur.

Navigating the Utility

Access the Invoice Credit, Purge, and Reverse Utility in the Customers > Accounts Receivable > Utiliites folder of the Master Explorer menu.

In the Invoice Credit, Purge, and Reverse Utility, only active invoices will be available for selection. Once an invoice number is chosen, the Customer, Order, and Amount fields will be populated. Based on the details of the invoice, only certain actions will be available. The Original Distributions grid is provided so that you can verify that the invoice selected is the invoice to be undone. This grid will only show data when the invoice selected has been posted to A/R, otherwise no distribution records exist.

Note:  For invoices entered in a prior version of Service Management, there is a possibility that the detail needed to reverse an invoice is not available. In this case, a message is displayed.
Related topics