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Accidently voided an invoice from Project Accounting

  • 1.  Accidently voided an invoice from Project Accounting

    Posted 12 days ago
    Help!  I accidently voided an invoice posted in project accounting.  It removed the item from the G/L, so the G/L is accurate, but now the project is overstated by that amount!  I cannot figure out how to remove the item from the project without messing up the G/L (ie posting a misc log or a return will post through to the G/L leaving it wrong too)!

    ------------------------------
    Meghan Schmidt
    The Alberta New Home Warranty Program (ANHWP)
    Calgary AB
    ------------------------------
    Academy - Online Interactive Learning from Experts


  • 2.  RE: Accidently voided an invoice from Project Accounting

    TOP CONTRIBUTOR
    Posted 12 days ago
    Hi @Meghan Schmidt ,

    A couple of questions for you - things could get interesting since it's Project. :)

    1.) When you say you voided the invoice, where did you void it?  In Receivables/Sales?  somewhere else?

    2.) When you say you removed the "item" from the GL, do you mean you did a general journal entry to reverse the impact of the original invoice?  Are you sure that the voiding of the invoice didn't also send a GL entry?

    3.) Should the invoice exist in receivables and doesn't?  Or is it a case where it shouldn't exist in receivables or project?

    Depending on your answers, you may still have to do a negative billing in the project subledger to bring it in line.  Then you may have to deal with that negative bill in the sales module and the GL....exactly how you deal with them will depend on the answers to the questions above.​​

    Does that make sense?

    Thanks,

    Samantha

    ------------------------------
    Samantha Higdon ,CPA,CGMA
    Consultant
    Lagom, LLC
    Carmel IN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 3.  RE: Accidently voided an invoice from Project Accounting

    Posted 12 days ago
    Hi Samantha,

    This come from me being thrust into Project accounting due to COVID rearrangements, so I was unsure of the process at the time.
    1) I voided it in payables as if it was a regular invoice.  This where it all went wrong.
    2) By voiding in payables, it reversed the entry in the GL, so the GL is accurate.
    If this also removed it from the project, everything would be fine, but because I had to do a new entry, we now have the same invoice twice under the project.

    So in summary:
    Voided project invoice through payables.  Amount was also removed from GL because it was voided, but the invoice is still showing under the project.
    New invoice for same amount was entered, also charged to the project.
    Project is now showing the same amount/invoice twice, even though everywhere else is accurate.

    Hoping that makes sense!

    ------------------------------
    Meghan Schmidt
    The Alberta New Home Warranty Program (ANHWP)
    Calgary AB
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 4.  RE: Accidently voided an invoice from Project Accounting

    TOP CONTRIBUTOR
    Posted 12 days ago
    Hi @Megan Schmitt ,

    It does indeed.  This is why we ask questions....I was thinking sales not payables.

    OK - so one follow up question...did the invoice that you voided have inventory items on it or was it non inventory?  The process is overall the same - just wrapping my head around the scenario.

    What I would recommend is to reduce costs by doing a "return" inventory transfer.  I know it sounds weird to say inventory transfer if your invoice didn't have inventory items on it BUT GP can be set up to allow noninventory items to be returned through that window.

    1.) Check to make sure that your inventory transfer is set to allow non inventory items.  Go to Project>>Setup>>Inventory Transfer. There will be a check box for "do not allow non inventory​ Items".  That checkbox is our enemy right now.  Make sure it is unchecked. :)

    2.) Go to Inventory Transfer through Project>>Transactions>> Inventory Transfer.

    3.) Set the type to "Return".  Pick your normal batch ID information, etc.  In the Comment section, I'd recommend putting a note so you can reference later and remind yourself why you did what you did.

    4.) Here's where the inventory item vs. non inventory comes into play.  In your detail window:
            A.) if you the invoice was non inventory (i.e. a consulting fee or something), you can enter a note in the item number to help you remember why you're doing                what you're doing
           B.) if you're trying to return an actual inventory item and you want that item to go back into inventory (because voiding an invoice in payables does NOT
                impact inventory), enter the inventory item number you are returning.

    5.) Set your quantity to 1 and your cost to match the invoice value you are trying to return....you may have to do a few separate lines here if you're returning multiple actual inventory items.

    6.) Save to a batch and review the edit list.  Your gl distributions (WIP, contra, COGS, etc.) will be based on how that cost category is set up so make sure it makes sense in the context of what you're dealing with.

    7.) BEFORE YOU POST - make sure your posting settings are set to have inventory transfer post  TO the GL not THROUGH the GL.  This will create a batch at the financial module that contains your inventory return.  From here you can either choose to delete the batch (i.e. not post to the GL) or let it post and just do a correcting GL.
         A.) for what it's worth - I generally recommend letting it update the GL and then correct it manually.  This lets you have a complete audit trail.

    8.) After making sure your distributions make sense in Step 6 and your posting settings for the GL are what you want in Step 7, post the inventory return in the project module.
         A.) Your project costs will be reduced in that cost category by the amount of the inventory return transfer.
         B.) if you returned an actual inventory item, you'll see that inventory item back in inventory (may need to post a batch in inventory depending on posting settings).
         C.) You shouldn't see a credit document or return document in payables so your vendor balance should be good assuming all went well with that new invoice you mentioned.
          D.) Depending on what you did in Step 7 for the GL posting settings you'll either have a batch waiting for you in the financial module OR it will automatically update the GL, and you need to do a correcting entry.

    The only hiccup you might experience with this approach is that some of your inquiry windows will show the invoices but not the inventory transfers since they are two different transaction types, but you can find the purchases/invoices inquiries in their lookup and the inventory transfers in theirs.  The overall project amount will be reduced to the proper amount, the cost category will be reduced, etc.

    Does that make sense?

    If you have the ability to restore to a test company, you can always walk through the process in test first to make sure it works as expected there.  I walked through the steps above in my local install, and it worked as I expected, but it never hurts to test in your actual environment when possible.

    If you have questions, let me know.  I'm happy to hop on a call or screenshare if that would help!

    Thanks,

    Samantha

    ------------------------------
    Samantha Higdon ,CPA,CGMA
    Consultant
    Lagom, LLC
    Carmel IN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: Accidently voided an invoice from Project Accounting

    Posted 10 days ago
    Thank you!  This worked like a charm!  It was non-inventory and now everything is in balance again!

    Meghan Schmidt

    ------------------------------
    Meghan Schmidt
    The Alberta New Home Warranty Program (ANHWP)
    Calgary AB
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 6.  RE: Accidently voided an invoice from Project Accounting

    TOP CONTRIBUTOR
    Posted 10 days ago
    VICTORY!!!

    I'm glad you were able to get it sorted.

    Thanks,

    Samantha

    ------------------------------
    Samantha Higdon ,CPA,CGMA
    Consultant
    Lagom, LLC
    Carmel IN
    ------------------------------

    Academy - Online Interactive Learning from Experts


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