Sales Invoice Correction
Based on the scenarios, here is the correct action for each:
Scenario 1: Use this action when the posted invoice has not been paid and the original invoice was posted from a sales order.
Action: Correct
The Correct action is specifically designed for this scenario. It automatically creates a new sales order, reverses the original posted invoice, and copies the original lines to the new order. The new sales order is then ready for editing, allowing you to make corrections and post it again.
Scenario 2: Use this action when the posted invoice has not been paid and the original invoice was not posted from a sales order.
Action: Cancel
The Cancel action is used when the invoice wasn't created from a sales order. It creates a credit memo to fully reverse the posted invoice. This effectively cancels the invoice without needing to go through a new sales order process, as no original sales order exists.
Scenario 3: Use this action when the posted invoice has been paid and warehouse documents are not required.
Action: Create corrective credit memo
The Create corrective credit memo action is the appropriate choice when the invoice has already been paid. Since the payment has been applied, you can't simply "correct" or "cancel" the invoice directly. Instead, you create a credit memo that can then be applied against the payment, effectively reversing the transaction. This action is also used when warehouse documents are not necessary, as a separate sales return order with warehouse processes is not required.
Submit