Cancellation and replacement of domestic invoices
Use this procedure to manually cancel an invoice rejected by the government platform or refused by the buyer and how to process a replacement invoice that meets authority requirements.
Rejected or refused invoices are displayed in 'Invoice Header. Open' (CMS500). These invoices have a government invoice status (field GINS) or customer invoice status (field CIST) set to 40-'Rejected'.
You cancel and replace a domestic invoice in 'Customer Invoice. Enter Manual' (ARS120). You can perform this task for manual invoices, fixed asset sales invoices, and internal invoices.
Background
In France, after the PA seller reports a customer invoice to the tax authority, the invoice number is consumed and cannot be reused. If the PA buyer rejects or refuses the invoice because of incorrect VAT, incorrect pricing, or missing required information, the seller must issue a new invoice.
To maintain internal accounting consistency and regulatory compliance, the seller must cancel the original invoice internally before issuing a corrected invoice. The cancellation is not sent to the buyer. Without controlled handling, this scenario can cause inconsistencies and incorrect reporting behavior.
Limitations
Support for domestic invoices under a fiscal representative will be available at a later time.
Corrective invoices that use method 1-'Select invoice line' are not supported for the replacement process.
Before you start
- The 'Cancel and Replace Invoice' parameter on 'Settings – Accounts Receivable' (ARS905/F) is set to 1-'Domestic invoices'.
- In the 'Invoice Category' (CRED) field in 'FAM Function Details' (CRS406), select Category 5 (Cancellation) or Category 6 (Replacement).
- If you select Category 5 (Cancellation), the invoice number series must match the internal number series defined in the 'Repl credit n/s' (RCNS) field in 'Settings – Invoice Numbering Rule' (MFS167).
- These two categories require that the 'Original invoice check' (OINC) field is set to 3-'Display field input mandatory' in AR20 'FAM Function Details' (CRS406).
Follow these steps
Invoice Category 5 - Cancellation of Invoice
When you select a FAM function that is defined with invoice category 5-Cancellation of Invoice, an internal credit note or debit note is created for the original invoice that is rejected or refused, as indicated by 'Gov inv status' (GINS) set to 40=' Rejected' or 'Customer invoice status' (CIST) set to 40-' Rejected' in 'Invoice Header. Open' (CMS500).
- In the 'Original Invoice' field, specify the rejected or refused invoice.
Alternatively, press F4 to open 'Invoice Header. Open' (CMS500) and select the rejected or refused domestic invoice.
- After you select the invoice, continue with the cancellation process.
Note: You cannot change header information.
- In the lines section:
- If the original invoice contains FAM function IDs AR20 or FA50, the line details are displayed. The amounts are reversed depending on whether the transaction is an invoice or a credit note. Do not change the lines or add new lines.
- For an internal sales invoice (FAM function ID MF01), you must specify lines that represent the invoice details. The specified line amount is automatically reversed depending on whether the cancelled document is an invoice or a credit note.
- After you complete the process:
- A voucher is generated to record the internal accounting transactions for the cancellation.
- The government invoice status (GINS) of the cancelled original invoice is updated to 55-'Cancelled'.
- The created internal credit or debit note is updated with government Invoice status (GINS) 99-'Not reported to the Government'.
- No invoice document (ARS121PF) is generated.
- After posting, the additional information for the original invoice and the related credit or debit note is updated.
- For the original invoice, additional information 236 is added.
- For the related credit or debit note, additional information 235 is added.
Invoice Category 6 - Replacement of Invoice
When you select invoice category 6-Replacement of Invoice, a new invoice or credit note is created for the original invoice or credit note that is cancelled, as indicated by government invoice status (GINS) 55–'Cancelled' in 'Invoice Header. Open' (CMS500). The replacement invoice receives government invoice status (GINS) 10, and the original invoice is updated to (GINS) 98-'Replaced' in 'Invoice Header. Open' (CMS500).
- In the 'Original Invoice' field, specify the cancelled invoice.
Alternatively, press F4 to open 'Invoice Header. Open' (CMS500) and select the cancelled domestic invoice.
- After you select the invoice, continue with the replacement process.
- In the lines section:
- If the original invoice contains FAM function IDs AR20 and FA50, the line details are displayed.
- For an internal sales invoice (FAM function ID MF01), you must specify lines that represent the invoice details.
- After you complete the process:
- A voucher is generated to record the accounting transactions related to the new replacement invoice.
- The government invoice status (GINS) of the replaced original invoice is updated to 98 -'Replaced'.
- The government invoice status (GINS) of the created invoice or credit note is updated to 10 -'Not used/not received'.
- Invoice document (ARS121PF) is generated.
- After posting, the additional information of the original invoice and the new invoice is updated:
- For the original invoice, additional information 236 is added.
- For the new invoice, additional information 235 is added.
Invoice category 1-'Credit note and invoice category 2-'Corrective invoice' apply when the 'Cancel and replace invoice' setting is activated in 'Settings – Accounts Receivable' (ARS905).
For credit note and corrective domestic invoice processing, the invoice must be approved by the customer, with 'Customer inv sts' (CIST) set to 90 in (CMS500), before it can be selected for processing.