Hi, Wed, 24 Oct 2012 11:17:38 +0200 Cédric Krier <cedric.kr...@b2ck.com>: >I'm working on improving the invoice workflow especially when the >cancellation when users make mistakes. >Here is the thoughts: > - It should be possible to cancel an opened supplier invoice by > doing a cancel move. > - Cancelling a customer invoice is done via credit note (already > implemented). AFAIK at least in Swiss, Austria and Germany accounting *cancellation* and *credit note* are two different conceptions.
A cancellation move is a move which completely neutralize another move. The result of a cancellation is the same as a deletion of the record in the database, but documenting this incidence. Cancellation is used AFAIK for correcting mistakes only or if no money changed hands. The cancellation move is set up identical as the original move, but debit and credit amounts of the lines are negated (* -1), but not change their sides like in credit notes. AFAIK the accounting date of a cancellation is the same as the accounting date of the original move, to neutralize the original move the same date it is created. The amount of the original move added to the cancellation move amount is zero. The total balance amount after the cancellation is the same as the original move has never been made. Credit note moves are setup identical as the original move, but change the sides of debit/credit amounts of the lines. A credit note always shows a difference in the balance to document a business case and money changed hands. The sum of the original amounts with the credit note amount will always raise the total balance. For both cancellation and credit note it is good to have a reason documented, especially for customer invoices because the enterprise owe the government the VAT. Reasons could be like this[1]: * Party returned goods, * Party overcharged, * Replaced by invoice No XYZ, * Invoice prepared in error. * Other While a tax audit, the enterprise could be requested for the reasons of cancellations years ago. Years later it is good to have some documentation why cancel or credit note specific invoices to not raise suspicion for money laundering or tax fraud. Regards Udo [1] http://www.uwo.ca/finance/people/ar/cancel.pdf -- _____________________________ virtual things Preisler & Spallek GbR München - Aachen Windeckstr. 77 81375 München Tel: +49 (89) 710 481 55 Fax: +49 (89) 710 481 56 i...@virtual-things.biz http://www.virtual-things.biz
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