Canceled billing document

[Former Member]

Hi,

We canceled a bunch of billing documents, but the date used for the cancelation was wrong and hence, the new accounting documents (reversals) were posted in the wrong fiscal year. How can this change be undone other than having to post manual journal entries? Is there a way a cancel document can be canceled?

Please advise.

Thanks.

AJ

[Former Member]

Hi AJ

No, a cancellation document can not be cancelled.

What you can do is to re-bill the underlying document (delivery or sales order). If you re-bill and post the re-bill into the same 'wrong' period as the cancellation, that will cancel out the incorrect cancellation. You will then be in a position to cancel the newly created billing doc, and post that cancellation into the desired period.

One point of warning/statement of the obvious: many people do not seem to realise that a cancellation id fundamentally different from a return or a credit memo. A cancellation is the correct transaction to use if the underlying document is to be re-billed to correct a pricing error or a date error.

HTH

James

[Former Member]

Hi James,

Thanks a lot for your prompt reply. Can you clarify the following:

a) If re-run billing, i will have to use the billing date of July (the 'wrong' period) in order for it to wash out the previous incorrect entries. Right? If that is the case, then will I be able to cancel this new billing document with a cancel date of June? (will the system allow the date in the cancel invoice to be before the billing date?)

b) If the answer to the above question is yes, then when i rerun billing, i presume all the accounting entries will be reversed. Correct? For example, right now i have a lot of debits sitting in my revenue acct for july. I re-run billing, it will post credits to wash those off and then i cancel the new billing doc with a june date, what exactly will the accounting entries be? Will i now have debits again in july as well as june? I am not clear about this part.

Thanks again for sharing your expertise.

AJ

[Former Member]

a) If re-run billing, i will have to use the billing date of July (the 'wrong' period) in order for it to wash out the previous incorrect entries. Right? If that is the case, then will I be able to cancel this new billing document with a cancel date of June? (will the system allow the date in the cancel invoice to be before the billing date?)

You need to watch your posting dates. I think that the system will indeed allow you to post the cancellation to "before" the billing date, but ideally you should test first in a QA system or sandpit client.

b) If the answer to the above question is yes, then when i rerun billing, i presume all the accounting entries will be reversed. Correct? For example,  right now i have a lot of debits sitting in my revenue acct for july. I re-run billing, it will post credits to wash those off and then i cancel the new billing doc with a june date, what exactly will the accounting entries be? Will i now have debits again in july as well as june? I am not clear about this part.

The cancellation will indeed be the mirror image of the original billing and the re-bill will be the mirror image of the cancellation.

The only proviso is that if pricing conditions have been changed, your re-bill may be at the new pricing. Just pay attention to pricing date and condition values before you save and post the new billing doc.