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Topic

    Giovanni Chamtyoo
    Cancelled invoices are accounted in GLAnswered
    Topic posted July 17, 2019 by Giovanni ChamtyooGold Medal: 3,500+ Points, tagged Financials, General Ledger, Payables, Reports, Setup / Administration, Subledger Accounting 
    139 Views, 12 Comments
    Title:
    Cancelled invoices are accounted in GL
    Summary:
    When cancelling an invoice which has never been accounted before same is being accounted in the GL
    Content:

    Actually i have an issue @ AP level. When we are cancelling and invoice which has never been accounted before same is being transferred to GL at time of create accounting. Is there a way to prevent the system from accounting a cancel invoice.

    Below is a brief summary of how this can happened:

    User input an invoice on AP module validate it then before initiate for approval he noticed that same has wrong currency i.e USD i/o EUR - Since invoice has already been validated we cannot delete it.

    Then user will cancel the invoice and re input same with the proper currency but at time of create accounting system is accounting both the cancelled invoice with the Debit and Credit amount together with the correct invoice.

    Hence, it there a way to prevent system from accounting a cancelled invoice which have never been accounted before.

     

    Thanks,

    Giovanni

    Best Comment

    Becky Alvarez

    Perfect, then make sure you get people to vote for it as the more votes (only one per company I think), the better chance it gets for approval.  I don't now if you are aware but we recently announced that we have moved our ER process to the Idea Lab so Customers could post their own ERs and see the progress and development will look at ideas based on popularity so yes this is a popularity contest. laugh

    Please note also that this is new so we are still working out the kinks.

    Comment

     

    • Becky Alvarez

      Giovanni,

      In this particular case the invoice had not been accounted but the cancellation process is meant to cancel an invoice that could have already been accounted so this is intended functionality.  We have seen that the odds are that the cancellation occurs after accounting more than before accounting.  There is not any way to alter the way the cancellation functions.  For more on exactly what the cancellation does refer to the AP User Guide.

      Hope that answers your question and sorry it is not the answer you want.

    • Giovanni Chamtyoo

      Hi Becky sorry this has not answered my question.

      What is the purpose of accounting a cancelled invoice when same was not accounted before ?

      The system must definitely ignore same as it was on EBS. Maybe i'm wrong but i don't see this functionality to be correct.

    • Becky Alvarez

      First of all this has nothing to do with how EBS functions.  Do you expect us to mimic EBS?  Please don't.  This is not EBS!!  This is CLOUD FINANCIALS.

      Now that we are clear that this is not EBS, here is how the Cancellation process works in Cloud AP.  The Cancellation process reverses the accounting per the documentation reference I provided in the link.  Canceling an invoice sets invoice and installment amounts to zero, reverses invoice distributions, and reverses matches to purchase order schedules and distributions.

      For invoices requiring budgetary control, canceling an invoice also reverses the expenditure funds consumed, and for matched invoices, restores the previously obligated funds for the purchase order.

      Reversing the distributions is what generates the GL journal entries. Also the cancellation process does not concern itself with whether create accounting has been run yet it will reverse the GL entries since the distributions are there and would generate accounting.  Also cancellation of an invoice could be done after accounting is run and you would in that case want GL entry reversed so the cancellation always reverses the distributions.

    • Giovanni Chamtyoo

      I know Cloud is not EBS and has nothing to do with EBS also.

      My concern is that if an invoice was not accounted before nor same was approved then why the system is accounting it while it is cancelled.

      I agree if same was matched with a PO or was accounted before and afterwards the invoice is cancel system will account it but in this situation the invoice is not match with any PO nor accounted before then why it must be accounted in GL?

       

    • Giovanni Chamtyoo

      Becky do you think that this can be taken into consideration in the coming enhancement... wink

       

    • Becky Alvarez

      Absolutely.  Just post an it as an Idea in the idea lab, I don't think this been added yet.

    • Giovanni Chamtyoo

      Ok will post same in the idea lab.

      Thanks very much Becky.

    • Becky Alvarez

      Perfect, then make sure you get people to vote for it as the more votes (only one per company I think), the better chance it gets for approval.  I don't now if you are aware but we recently announced that we have moved our ER process to the Idea Lab so Customers could post their own ERs and see the progress and development will look at ideas based on popularity so yes this is a popularity contest. laugh

      Please note also that this is new so we are still working out the kinks.

    • Giovanni Chamtyoo

      Thanks Beckywink