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    2019-07-04
    AP - why can fully paid invoice lines be cancelled?Answered
    Topic posted August 1, 2019 by 2019-07-04Red Ribbon: 250+ Points, tagged Financials, Payables 
    72 Views, 15 Comments
    Title:
    AP - why can fully paid invoice lines be cancelled?
    Content:

    Hi,

    We are using Oracle Cloud Application 19B (11.13.19.04.0).

    We have cases where users have gone into a fully paid and validated and accounted AP Invoice - such as in Screenshot1 on image on this post.

    The invoice = 228, and the Payment = 228.

    The invoice is validated, yet the user can go to Actions > Edit, then select the line and discard it (screenshot 2).

    Then system lets them Discard the line, even though the invoice has been paid, etc. etc.

    Why would the system let them do that?

    Yet - if the invoice as a whole is cancelled - or the user tries to cancel a fully paid invoice - that is not possible (screenshot 3).

    I have tested the same on R12.1.3 - and I cannot cancel the invoice line for a fully paid invoice.

    Why would it be possible on ERP Cloud, and is there any way to stop users from being able to do that?

    Thanks

    Jim

    Image:

    Best Comment

    Becky Alvarez

    Do you have "Allow Adjustments to Paid Invoices" checked in Manage Invoice Options?  If that is NOT checked then the system will NOT allow you to make changes to paid invoices, if you check the box the system WILL ALLOW CHANGES to paid invoices.  This option is set for each business unit.

    Comment

     

    • Lori Culp

      Hi Jim,

      We utilize this functionality to correct the distribution lines versus having to do a GL reclassification.  It allows AP to keep the distribution with the source documentation and ensures the accounting can be traced back to the source.  

      If you have a case where the distribution lines are wrong, what is the alternative?  

      Lori

       

      • 2019-07-04

        Hi Lori - thanks for your reply.

        I suppose I was thinking that if the invoices is validated, accounted and fully paid, that there should be no reason a user could cancel the line.

        I can maybe understand correcting distribution lines - but to cancel the whole line once the invoice has been paid - why would that be useful?

        You're then left with a fully paid invoice which has a Zero Value, but the invoice is linked to a Payment, which is fully paid?

        Thanks

        Jim

    • Lori Culp

      Hi Jim,

      We can't fully cancel the lines without re-balancing the transaction (entering new lines).  AP would not allow you to close if this transaction lines were fully cancelled and the invoice was paid.  

      Hope that helps.

      Lori

      • 2019-07-04

        Hi Lori,

        Thanks for your reply.

        When you say:

        >> We can't fully cancel the lines without re-balancing the transaction (entering new lines)

        Do you mean, that the system should not let you cancel lines without having to enter new lines? If that's the case - we're not seeing that behaviour. Users can edit validated, accounted and paid invoices, and cancel existing lines.

        And then:

        >> AP would close with a warning on this transaction if the lines were fully cancelled and the invoice was paid.  

        Again - even if it does close with a Warning because the user has cancelled such a line - how would we work around that? Just add a new line in again to replace the line which the user cancelled previously?

        Sorry for the basic questions.

        Thanks

        Jim

        • Lori Culp

          Hi Jim,

           

          Yes, if the user cancelled the lines, the transaction wouldn't be in balance, so new lines would need to be added.  At month end, during close the transaction with cancelled lines that was paid would force you to sweep it into the next open period as the close wouldn't work as the transaction would be out of balance. 

          Hope this makes sense.

           

    • Becky Alvarez

      Do you have "Allow Adjustments to Paid Invoices" checked in Manage Invoice Options?  If that is NOT checked then the system will NOT allow you to make changes to paid invoices, if you check the box the system WILL ALLOW CHANGES to paid invoices.  This option is set for each business unit.

    • 2019-07-04

      You are all rockstars!

      Thanks Becky for your advice about how to prevent the issue, John for spotting the typo, and Lori as well as I now know how to fix the broken invoices.

      I checked and R12.1.3 and found the related option.

      Thanks again - this forum is excellent

    • Alan Rowland

      Be careful using this functionality; your auditors may not be a fan of it.

      • Lori Culp

        Hi Alan,

        We have numerous controls around this as we would rather change the distributions on the source versus having a reclassification via journal entry.

        Thanks,

        Lori

        • Alan Rowland

          I've seen it go both ways.  I've seen auditors who were aghast at the thought of changing the accounting for an invoice that was already booked to the GL  My personal preference is to change the distributions so AP and the  the GL are in agreement rather than add to an ever-increasing list of reconciling items.

    • Guillaume Roux

      Hi,

      We are testing this feature because today we are loading technical CM and invoices to update the account combination of the AP invoice lines.

      We are doing this way because of the large volume of invoices and correction that we have to manage.

      We are checking if there is a REST API to do this kind of update directly on the original invoice with the "Allow Adjustements to paid invoices" check.

      If it's not the case I will open an ER.

      Regards,

      Guillaume