Invoice Correction request/ Invoice Cancellation

[Former Member]

Hi,

When does business use Invoice cancellation? If customer has any discrepancies related to price or quantity SAP has an option to edit using Invoice correction request document with reference to invoice document.

However what is the use of canceling invoice which normal does in VF11. When should invoice cancellation to be used and when should invoice cancellation request to be used.

Thanks in advance.

[Former Member · Accepted solution]

Hi,

Once you create an invoice the customer account is debited. The customer has to be pay the amount. The commitment starts from the date of invoicing. So, if the invoicing date varies from the agreement, we have cancel the invoices.

For example, If you are agreed to the customer to invoice for all the deliveries on 30th of every month. But by mistake you created invoices on 15th of a month. So, in this situation you have to cancel the invoice.

Regards,

K Bharathi

[Former Member · Accepted solution]

Hi Bharathi,

Thanks for your reply.

I got some sense when to use Invoice correction/ Invoice cancellation. However I would request you to please add some more inputs to your clarification if you can, so that I can understand the differences in other scenarios as well.

Thanks.

[Former Member]

Hi,

Suppose if your invoice is wrong & u want to correct it then use INVOICE CORRECTION.

If you invoice is wrong and u want to cancell it want to create new one then cancell.

kapil

[Former Member]

Hi Kapil,

This is like a generic answer. Anyone can derive the same by the name itself.

I want to know in which scenrios invoice cancellation and invoice correction request are to be used.

Thanks.

[Lakshmipathi]

Invoice cancellation

In most of the cases, the seller would have generated billing document with either wrong quantity or wrong price. In this case, instead of making subsequent adjustments, immediately, they will cancel the document and recreate a new one.

In some cases, the end customer will ask the seller to hold the shipment by the time, the seller would have generated the billing document. So here there is no option to cancel all the documents.

In fact, invoice cancellation is only possible if the material is not moved out from the delivering plant.

Invoice Correction Request

Here the scenario would be goods would have been delivered to customer with either the quantity or price wrong. Here you cannot cancel the document but you have to compensate the buyer by way of making adjustments via Invoice correction request.

Hope you got the difference between these two. In nutshell, invoice cancellation can happen when goods are not despatched and invoice correction request can happen when goods are reached the end customer.

thanks

G. Lakshmipathi

[Former Member]

Thank you so much.

I got the sense when to use what.

Thanks.