Create a replacement invoice for project order
You can create a replacement invoice on a domestic invoice that is rejected by the authorities or refused by the customer.
In France, an electronic invoice that is rejected by the government platform or by the customer is not legally valid. Once rejected, the invoice number is consumed and cannot be reused.
This functionality enables customers to reverse internal postings through a dedicated replacement credit and issue a new replacement invoice with a new invoice number.
This functionality ensures correct financial handling and compliance with French legal requirements for electronic invoicing.
Limitations
Replacement invoices are possible only for domestic invoices, when the base country and from/to country are the same, and replacement invoices are permitted for this country.
Credit invoices cannot be replaced.
For summary invoices, the replacement process is not supported if invoices are rejected separately and then included in a joint replacement summary invoice. If an invoice is rejected, it must be replaced with a single invoice to keep the references correct. A replacement summary invoice cannot refer to several different rejected invoices.
Replace invoices
The replacement invoice functionality for rejected electronic invoices is activated through the field 'Repl credit n/s' (RCNS) in 'Settings - Invoice Numbering Rule' (MFS167).
The functionality provides a controlled process for replacing rejected invoices. When the replacement invoicing functionality is activated, you handle rejected invoices by creating an internal replacement credit to reverse existing postings, followed by the creation of a replacement invoice with a new invoice number. This functionality is used to cancel and replace domestic invoices in 'Project Invoice. Update' (POS480) and 'Project Invoice. Display' (POS350).
When authorities or customers reject an invoice, you must initiate a specific replacement procedure rather than use the standard credit process. When you replace a rejected invoice in project management, the process basically consists of two steps. First, you must create a cancellation invoice for the rejected invoice. Then, you must send a replacement invoice with the corrected information. The replacement invoice is clearly linked to the original invoice, ensuring traceability and compliance with regulatory requirements.
Replacement invoice process
When an electronic invoice is rejected, this is indicated by the fields 'Gov inv status' (GINS) or the 'Customer inv st' (CIST) in 'Invoice Header. Open' (CMS500). Once an invoice is rejected, its invoice number is considered used.
Project order invoices are created, updated, and credited in (POS480) and (POS350). The replacement process follows the same flow as standard corrections, but it uses dedicated options. In the regular credit or correction process for project orders, you use option 15-'Credit' in (POS350), 34-'Credit' in (POS480), and 29-'Invoice' in (POS480). These related options are not used in the invoice replacement process. Instead, you use related options 19='Replacement credit' in (POS350), 36='Replacement credit' in (POS480), and 37='Replace invoice' in (POS480).
Outcome
When the new replacement functionality is activated, an invoice that is rejected or refused, as indicated by 'Gov inv status' (GINS) set to 40-'Rejected' or 'Customer inv st' (CIST) set to 40-'Rejected' in (CMS500), must be credited in (POS350) or (POS480) using related option 19='Replacement credit' in (POS350) or 36='Replacement credit' in (POS480).
Once the credit is created, use the new related option 37='Replace invoice' in (POS480) to replace the rejected invoice with a replacement invoice.
Replacing a rejected invoice results in these invoices:
- The cancellation invoice is for internal accounting purposes only and is not sent to the tax authority or the buyer. The invoice uses the number series defined in the new field 'Repl credit n/s' (RCNS) in (MFS167). The internal credit note or debit note receives the 'Gov inv status' (GINS) of 99-'Not reported to government' with a 'Classification' of 11-'Cancellation' in (CMS500). Therefore, no invoice printout is generated for it.
- A new invoice is created to replace the original invoice that is rejected, as indicated by the 'Gov inv status' (GINS) of 40-'Rejected' or the 'Customer inv st' (CIST) of 40-'Rejected' in (CMS500). The new replacement invoice receives the 'Gov inv status' (GINS) of 10-'Not used/not received' with a 'Classification' of 12-'Replacement', while the original invoice receives the 'Gov inv status' (GINS) of 98-'Replaced' in (CMS500), where an invoice printout is generated.
Follow these steps
Follow these steps to perform an invoice replacement in the project order module:
- Invoice rejection
The electronic invoice is rejected and indicated by GINS and CIST in (CMS500).
- Issue replacement credit
Identify the rejected invoice and use option 19 in (POS350) or option 36 in (POS480).
- Change invoice proposal
Once the replacement credit is issued, make corrections in (POS480).
- Issue replacement invoice
Issue the corrected invoice or replacement invoice using option 37 in (POS480).
Use related option 19='Replacement Credit' or 36='Replacement Credit'
Using related option 19='Replacement Credit' or 36='Replacement Credit' has these results:
- An internal credit is performed. This type of credit uses the numbering series specified for replacement credit in (MFS167).
- M3 Accounts Receivable and M3 General Ledger are updated.
- The credit is created with 'Gov inv status' (GINS) 99 of 99-'Not reported to government' and 'Invoice classification' (IVCF) of 11-'Cancellation'. The credit invoice refers to the original invoice. This credit is never sent to the government or the customer.
- Creating a replacement credit is a prerequisite for creating the replacement invoice by using option 37='Replace invoice'.
Use related option 37='Replace invoice'
Using related option 37='Replace invoice' has these results:
- A new replacement invoice is created.
- The new replacement invoice has the field 'Invoice classification' set to 12='Replacement' in (CMS500).
- Field 'Ref extended inv' (RXIN) in (CMS500) contains a reference to the original rejected invoice.
- The rejected original invoice has the field 'Gov inv status' (GINS) set to 98='Replaced' in (CMS500).
Rejected Invoice
An invoice that is rejected or refused as indicated by 'Gov inv status' (GINS) set to 40-'Rejected' or 'Customer inv st' (CIST) set to 40-'Rejected' in (CMS500) is replaced in (POS480) using related option 36='Replacement credit' and in (POS350) using related option 19='Replacement credit'.
Base Country
For domestic invoices, activate the additional field 'Dom e-rep inv' (DERI) in 'Country. Open' (CRS045). Activating this field is required to enable replacement invoice functionality and to ensure that other domestic invoices outside these regulatory requirements remain unaffected.
Credit and Corrective Invoices
When using the replacement process, the customer must approve the domestic invoices, indicated by 'Customer inv st' (CIST) set to 90-'Approved' in (CMS500) for the original invoices, before issuing a credit note.
If that is not the case, related option 15='Credit' in (POS350) and related option 34='Credit' in (POS480) are blocked for use.
Before you start
- Specify the replacement credit note series in field 'Repl credit n/s' in (MFS167).
Specify a value in this field to enable the ability to replace rejected invoices. This action imposes restrictions on the credit process for project invoices. Specifically, a credit invoice is only permitted if the invoice has 'Customer inv st' of 90-'Approved' in (CMS500).
The restriction on crediting invoices only applies to domestic invoices where the 'Base country' in (CRS045) has 'Dom e-rep inv' field active.
- An invoice has 'Gov inv status' of 40-'Rejected' or 'Customer inv st' of 40-'Rejected' in (CMS500).
- The invoice is a domestic invoice, and the field 'Dom e-rep inv' is active in (CRS045) for the base country.
Settings
Set 'Repl credit n/s' (RCNS) in (MFS167).