Create a replacement invoice for rejected credit invoices in project order

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.

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, rejected invoices can be handled 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 replacing 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.

When the new replacement functionality is activated, a debit 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.

A rejected credit invoice as indicated by 'Gov inv status' (GINS) set to 40-'Rejected' or 'Customer inv st' (CIST) set to 40-'Rejected' in (CMS500), must be debited in (POS350) by a cancellation invoice using option 20='Replacement debit' in (POS350).

Once the cancellation invoice has been created, the rejected invoice must be replaced with a replacement invoice by using the new related option 21='Replace credit invoice' in (POS350). Replacement of credit invoices can only be done in (POS350).

Replacing a rejected invoice results in two 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 to perform an invoice replacement of a credit invoice in the project order module:

1. Invoice rejection

   The electronic invoice is rejected and indicated by GINS and CIST in (CMS500).

2. Issue cancellation debit

   Identify the rejected credit invoice and select option 20 in (POS350). An internal debit invoice is created to cancel the rejected credit invoice. No new program or panel is displayed. A dialogue box is displayed to confirm creation of the cancellation invoice.

3. Issue replacement invoice

   Use option 21 in (POS350) to issue the new credit invoice or replacement 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'.

If the rejected invoice is a credit invoice, it is cancelled by using option 20='Replacement debit' in (POS350) and replaced by using the new related option 21='Replace credit invoice' in (POS350). Replacement of credit invoices can only be performed in (POS350).

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.

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.

• Specify the cancellation invoice number series in field 'Repl credit n/s' in (MFS167).

  Specifying a value in this field enables 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.

Set 'Repl credit n/s' (RCNS) in (MFS167).