1888021 - Cancel Already Cleared Supplier Invoice

You cancel a supplier invoice, instead of setting the original invoice as canceled, the system posts an Invoice Reversal document to the supplier account, and make it show up in the Open Items list.

1. First of all, go to the Supplier Invoicing work center, and choose the Invoices and Credit Memos view.
2. Select the supplier invoice in question, and choose Cancel Document.
3. The Invoice Cancellation document is posted, and the supplier invoice is canceled.
4. Then go to the Payables work center, and choose the Suppliers view.
5. In the Supplier Accounts view, open the details of the Supplier in question.
6. Show Open Items.
7. You can see the invoice cancellation document is shown in the list with the Document Type being Invoice Reversal.

The supplier invoice is already cleared by an outgoing payment, when you cancel the supplier invoice in the Supplier Invoicing work center, the original clearing still exists, and the system generates a new open item which is the reversal document.

It is preferable that you do not cancel an invoice that has already been paid or cleared.

If, however, you need to cancel an invoice that has already been paid, first go to the Payables work center to reverse the clearing and then cancel the invoice in the Supplier Invoicing work center.

But in you case, the original invoice is cleared, and the payment has been confirmed in the bank statement. Instead of canceling the clearing, you first cancel the supplier invoice, so the original clearing still exists, an invoice reversal document is posted to the supplier account. You have two options to clear the Invoice Reversal document:

• If the supplier returns the payment, you may manually clear the Invoice Reversal Document by an incoming payment:
1. Go to the Payables work center, and choose the Suppliers view.
2. In the Supplier Accounts view, open the details of the Supplier in question.
3. Show Open Items.
4. Select the Invoice Reversal document in question, and choose Pay Manually By.
5. Select for example, Incoming Check.
6. Enter the necessary information, and choose Post.
7. The Reversal document is cleared in this way.
• You can also reverse the payment clearing of the original supplier invoice, and set the invoice back to Open, after that manually clear the original invoice and the reversal document:
1. Go to the Payables work center, and choose the Suppliers view.
2. In the Supplier Accounts view, open the details of the Supplier in question.
3. Show Cleared Items.
4. Select the original invoice in question, and open the clearing of this invoice.
5. Choose View All, and then Reset Clearing.
6. The original invoice and the outgoing payment are set back to Open on the Supplier Account. 
7. You can then choose the original supplier invoice and the Invoice Reversal together, and choose Clear Manually.
8. For the outgoing payment, you may leave it on the supplier account for future clearing, or clear it with other supplier invoices.

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