Invoice cancellation

Law 160/2013 introduced a new schema for the SAF-T and it includes the possibility of having a canceled invoice status (Invoice Status = A). This feature is based on a categorization of a specific document that will reverse the invoice and set it up as a canceled invoice.

An invoice cancellation document will prevent the user from creating a credit note and the consequent VAT regularization and the return of the document manually signed to be eligible to be included in the VAT report.

Once the invoice is posted, it requires a special document type, Invoice cancellation, to cancel the invoice.

This document type will only be available for credit note types and an invoice imputation is mandatory. Once this document is posted it will:

  • Generate an automatic journal reversing the invoice.
  • Match the invoice with this new document.
  • This credit note type will never be sent to SAF-T.
  • The linked invoice will be marked as Canceled and communicated with this status.
Once this feature is deployed with another legislation, it is no longer linked to KPO activity code.

Setup

Setting up invoice types

A dedicated invoice type is required to cancel an invoice, set up in the Invoice types function (GESTSV2).

If the Invoice category selected is Credit memo or Credit note (INVTYP = 2 or 4) you can select the Cancellation invoice checkbox, automatic journals will be disabled and the original invoice automatic journal will be applied.

Setting up a credit memo transaction

A dedicated credit memo entry transaction must be configured to create a cancellation invoice.

Process

When a cancellation document is created, it is mandatory to input the original invoice.

  • In Customer BP invoices (GESBIC), you must enter the Invoice number field (INVNUM).
  • In Sales Invoices (GESSIH), the input lines must be linked only to invoices. Therefore, only invoices can be selected and you cannot manually enter any line.
  • A new REVCANSTA field in the SINVOICE table can have three values:
    • 0: Normal status and default value.
    • 1: Canceled invoice. This will be the value assigned to the canceled invoices.
    • 2: Invoice cancellation. This is the value that will be assigned to the document that will reverse the invoice under the title Invoice cancellation.
  • Regardless of the setting of the LETAUTCNO - Auto match inv to credit memo parameter (CPT chapter, MTC group), the invoice cancellation document always matches with the original invoice.
  • It will not be possible to generate a Cancellation invoice document for intercompany invoices.
  • The Invoices to cancel selection list, contains invoices not previously paid, credited or canceled is available to generate the cancellation document.

Processing Sales invoices

For an invoice cancellation, there is a specific list in the Selection panel that displays invoice headers to select invoices to cancel. This new list is of course not available in other invoice or credit note transactions.

Rules

  • You can only select invoices and only one in the same document.
  • Once the screen is loaded, you cannot enter or change anything from the loaded values. Screens are disabled for any modification.
  • The same is true for complementary screens such as addresses, texts or customs information.
  • The amount of the credit note of invoice cancellation must be equal to the original invoice.
  • It is not possible to cancel the same invoice twice. If an invoice is already linked to a credit note invoice cancellation type, it cannot be linked again on a new credit note.
  • You cannot create a normal credit note for an invoice that has been canceled before.
  • A paid or partially paid invoice cannot be canceled.
  • The Open items and Payment are disabled for this document type.

Processing AP-AR accounting invoices

There are two methods to cancel an invoice:

  1. The Invoice number field is mandatory for an invoice cancellation document type.

  2. Using the Invoice > Credit memo function (GEABIC).

    3. If a cancellation invoice type is selected, only the Accounting date, Customer, Control and Invoice number can be modified. After the creation of the record, only the Accounting date can be modified.

Once the cancellation document has been created, only the Accounting date can be modified.

Sales invoice inquiries

Inquiries are also impacted by this feature.

If the company selected has a context of invoice cancellation, there are two new criteria:

  • Include Cancelled invoices
  • Include Cancellation invoices