How to handle Sales Invoice corrections and returns

A scenario-by-scenario guide to reversing, correcting, and crediting posted Sales Invoices in SOFT4Spaces.

Table of Contents

Scenario 1. The Sales Invoice was posted with outdated contract terms (for example, an old price) Note: Scenario 2. The posted Sales Invoice needs a technical correction Note: Scenario 3. The Sales Invoice covers the full Charge amount, and you want to choose whether to reissue it Note: Scenario 4. Two Sales Invoices were issued from the same Charge Scenario 5. The Charge entries were created from a Cost entry Note:

 

 

This guide explains how to correct a posted Sales Invoice in SOFT4Spaces and how to handle Service Ledger Entries for each situation. It is organized by real situation. Find the one closest to yours.

Scenario 1. The Sales Invoice was posted with outdated contract terms (for example, an old price)

Example: You created and posted a Sales Invoice. Afterward, you notice it was created using outdated contract terms. For example, the price on the Service Price list had not yet been updated when the Charge was created.

Note:

  • This approach works when the each Sales Invoice line covers the full amount of the related Charge entry.
  • If the Charge was invoiced only partly, or across more than one Sales Invoice, Cancel action is not available. The system shows a message: "Invoice cannot be Cancelled because line [line no.] amount is not equal to related Charge entry [entry no.] amount. Use 'Create Corrective Credit Memo' to cancel this invoice." 
  • In this case, use the Create Corrective Credit Memo action instead of Cancel.
  1. Open the posted Sales Invoice.
  2. Choose the Cancel action.

The system automatically creates and posts a Sales Credit Memo and cancels the related Service Ledger Entries. This means you can create the Charge entries again.

  1. Update the price on the Service Price list or other contract terms.
  2. Open the Service Journal and create the Charge lines again for the same period. They will now be calculated using the updated price.
  3. Post the Charge and issue a new Sales Invoice.

The new Sales Invoice is issued according to the new Charge entries, with the corrected price.

After the cancelation, the canceled Charge and Invoicing entries in Service Ledger Entries are indicated by the following fields:

  • Canceled: Yes on the original entry, meaning it has been reversed and is no longer active.
  • Cancelation Credit Memo No. shows the number of the Sales Credit Memo that reversed this entry, so you can trace which credit memo canceled which entry.
  • Credit Memo Entry: Yes shows that this entry was created based on credit memo document.

Scenario 2. The posted Sales Invoice needs a technical correction

Example: You created and posted a Sales Invoice, but it needs a correction, for example to the date, amount, or other details.

  1. Open the posted Sales Invoice.
  2. Choose the Correct action.

The system creates and posts a Sales Credit Memo for the original Sales Invoice, and creates a copy of the original Sales Invoice for correction. 

The canceled Charge and Invoicing entries in Service Ledger Entries are indicated by the following fields:

Unlike Cancel, using Correct leaves the Charge entries uncanceled. The Applies-to ID field shows that a Sales Invoice has been created for them.

You can also correct the amount on the reopened invoice, but keep in mind that the Charge entries will not be recreated. If you change the amount, it will no longer match the related Charge entry amount.

Note:

  • This approach works when the Sales Invoice covers the full amount of the related Charge entry.
  • If the Charge was invoiced only partly, or across more than one Sales Invoice, Correct will not work. The system shows a message: "Invoice cannot be Cancelled because line [line no.] amount is not equal to related Charge entry [entry no.] amount. Use 'Create Corrective Credit Memo' to cancel this invoice."
  • In this case, use the Create Corrective Credit Memo action instead of Correct. 

 

Scenario 3. The Sales Invoice covers the full Charge amount, and you want to choose whether to reissue it

Example: You created and posted a Sales Invoice that covers the full amount of the related Charge entries. You want to cancel it, but you are not sure yet whether you will need to reissue it with new data. Create Corrective Credit Memo lets you decide at the moment of posting.

  1. Open the posted Sales Invoice.
  2. Choose the Create Corrective Credit Memo action.
  3. Post the Sales Credit Memo.
  4. When asked whether to cancel the Service Ledger Entries, choose Yes or No.
  • If you choose Yes, for example because the contract terms changed and you need to recalculate the Charge, same as in Scenario 1, the Service Ledger Entries get the same fields as in Scenario 1: Canceled, Cancelation Credit Memo No. and Credit Memo Entry. You can then create the Charge entries again with the updated price and create a new Sales Invoice.
  • If you choose No, entries in Service Ledger Entries will not be canceled. You can correct the document details or amount, but the Charge entries are not recreated.

Note:

  • If the invoice amount does not match the related Charge entry, for example because you adjusted it manually, and you chose Yes to cancel the Service Ledger Entries, the system shows an additional message for each mismatched line: "Charge entries will not be cancelled because line [line no.] amount is not equal to the related charge entry [entry no.] amount. Continue without Cancelation?"
  • If you choose Yes here, the Sales Credit Memo is still created, but the result is the same as in Scenario 2: you cannot recreate the Charge entries for that lines.

Scenario 4. Two Sales Invoices were issued from the same Charge

Example: A Charge entry for Rent was invoiced and posted across two separate Sales Invoices instead of one. One of those invoices also included a Cleaning charge that was not split. You want to cancel them.

  1. Open one of the posted Sales Invoices.
  2. Choose the Create Corrective Credit Memo action.
  3. Enter the full amount, 900 for Rent (was 150 on the original Sales Invoice), of the related Charge entry on the Credit Memo line.
  1. Post the Sales Credit Memo.
  2. When asked whether to cancel the Service Ledger Entries, choose Yes or No. Choosing Yes cancels the Service Ledger Entries, and you will be able to create the Charge entry again. Choosing No leaves them as they are, and you will not be able to recreate the Charge entry.
  3. Repeat the same steps with the Cleaning service for the other Sales Invoice.

Scenario 5. The Charge entries were created from a Cost entry

Example: You issued a Sales Invoice covering several services, including a Charge entry created from a Cost entry. Lease Contract terms or prices then changed, and the Sales Invoice needs to be reissued. You cancel the full Sales Invoice.

  1. Open the posted Sales Invoice.
  2. Choose the Cancel action.

In Service Ledger Entries The Cost entry becomes Open again, and its Remaining Amount is shown. 

If you open Detailed Entries from related Charge entry, in Detailed Service Ledger Entries, the Cost entry gets the Canceled flag. This lets you create the Charge entries again from the same Cost entry in Service Journal.

Note:

  • If the Sales Invoice amount was adjusted manually and no longer matches the full Charge amount, Cancel is not available. Use Create Corrective Credit Memo instead.