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How to cancel an invoice?

A guide for cancelling an invoice

Updated over 10 months ago

Edition: Professional, Business, Enterprise

User-level: Director, Assistant Administrator, System Administrator

Use this method when a finalised invoice has already been created, and the invoice has now been found to be incorrect. If the invoice document hasn't been sent out (shared, emailed, posted) to the client yet, so you can still make amendments to the invoice document.

Cancelling an invoice marks the original invoice document as credited and returns all the attached transactions to WIP. This means that the transactions and the agreed fee can be re-invoiced to the client on a newly created invoice.


Cancelling the invoice

To cancel an invoice:

  1. Open the Project and go to the Project Menu > Financial > Invoices section.

  2. Click on the invoice you wish to write-off.

  3. Click on the ellipses at the top right of the invoice and select 'Cancel or credit invoice'.

  4. Select the 'Cancel the invoice' option.

  5. In the cancel credit creation page, enter the following (optional) details, or leave these items with the default values.
    Credit note text - type a reason to explain why the write-off credit note is being created, or any other note. This can be printed on a write-off credit note document.
    Prefix and number - select an alternate credit note number prefix and assign the next available number in the sequence.
    Credit date - set the date for the credit note document. Choose either the invoice date, today's date, or select a date from the calendar. This will default to the date of the invoice.

  6. Click Save at the top right.

The cancelled invoice will still be visible in the invoice list but will now have a 'Cancelled' status.


Reusing the invoice number

If you are cancelling an invoice due to error, you can reuse the invoice number if you need to. You will first need to create a new set of invoice numbers with the prefix of 'CAN'.

Creating a new invoice number sequence with a different prefix will free up the original invoice number for use again.

To create a new invoice number:

  1. Go to Organisation > Settings > Organisation > Invoice numbers and click Add.

  2. Set your Invoice Prefix to CAN and ensure that the number format matches your normal invoice number. eg:

Process the invoice cancellation as per the above steps. If you use our Xero, MYOB, or QBO Connect feature, you need to sync the cancelled invoice first before proceeding to the next step to ensure that the cancellation credit is applied to the correct invoice.

After the cancellation credit is synced across and applied to your invoice, proceed with the steps below.

Modify the invoice number.

Now that the invoice is cancelled, we need to change the number to the cancelled invoice number.

  1. Go to the invoice list.

  2. Click the pencil icon for the cancelled invoice and select 'Modify.'

    The modify invoice screen will appear.

  3. Change the prefix from 'INV' to 'CAN' and save.

​Synergy will warn you to check if the invoice is already in your financial system, proceed. If you are using connect this will be the time to modify the invoice number in your accounting software to match what is in Synergy. Changes in invoice number cannot automatically be synced.

Recreate the invoice.

Once the prefix has been changed, you can proceed and create an invoice with the usual procedures but including the new changes. In order to reuse the previous invoice number, make sure you modify the invoice number manually while it is being created, otherwise it will auto generate the next number in the sequence:


Tips!

  • You cannot cancel an invoice that has an existing credit or payment on it. Before you cancel an invoice, you will need to first remove any payments and reverse any credits.

  • Only your Synergy System Administrator can delete a cancelled invoice. Deleting an invoice will remove the original invoice and the cancel credit note to allow you to re-use the invoice/credit numbers if required. Learn more about deleting project invoices.

  • Cancelled credit notes cannot have a date earlier than the original invoice date.


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