Invoices typically start in Draft Status, and are then Posted. In some cases, it is necessary to revise or cancel an Invoice.

Example: When a mistake is made and the Invoice is no longer considered a final Invoice to the Customer, it can be reversed and the original Subscription or Order can be modified to reprocess the Invoice.

Caution: A reversed Invoice cannot be undone and a reversal Journal Entry automatically posts for the reversed Invoice.

Preconditions:

1. Only Posted Invoices can be changed to Reversed.
2. This will create an additional Journal Entry to denote the reversal.
3. Financial Period Report and Reporting for the reversed Invoice takes place in the period (month) of the Invoice reversal.
   • Best Practice: Reconcile this in the accounting system in the month of the reversal, and as part of the Financial Period close for that same month.

Steps:

1. Navigate to Menu > Operations > Invoices.
2. Click Reverse from the More menu for the desired Invoice.

Reversing an invoice changes all billed charges to Unbilled, which can be invoiced in the future. 

Caution: A reversed Invoice cannot be undone and a reversal Journal Entry automatically posts for the reversed Invoice.

This action will revert all charges on this invoice to unbilled. Charges can be removed by editing the billing schedule(s) or upcoming charges. A reversal journal entry will automatically post for this invoice. 

3. Skip to the section below when Regenerate PDF on Invoice Reversal is enabled via General Settings.

Otherwise, click Reverse to confirm the Reversal.

Regenerate PDF on Invoice Reversal 

When Regenerate Invoice PDF on Reversal is enabled via General Settings, the Invoice PDF will automatically regenerate to reflect the reversed status to notify the customer of reversal. This setting will replace the existing Invoice PDF with a new reversal PDF using the Invoice Reversal Template. 

Preconditions:

• See Regenerate Invoice PDF on Invoice Reversal article for requirement details. 

Steps: 

1. Navigate to Menu > Operations > Invoices.
2. Click Reverse from the More menu for the desired Invoice.
3. On the Reverse Invoice modal, enable Deliver Reversed Invoice by Email to automatically send the Reversed Invoice PDF to the Invoice Billing Contact. 

4. Click Reverse to confirm the Reversal. 

The email communication is available via the Customer record in the Email History section.