Invoicing and receipts

Voiding invoice

Last updated Wednesday, May 10, 2023

When should you void an invoice

Reasons why you may void an invoice that you've already sent to the customer:

  • The customer is requesting some changes
  • The invoice has mistakes that you want to correct
  • You issued the invoice by mistake

Difference between writing off and voiding an invoice

You write off an invoice when you've delivered the goods or the service to your customer and you believe that you will not be paid.

When you write off an invoice, you typically book the loss in an account such as Bad debt.

When you void an invoice, the original revenue booked will be reversed under the same revenue account used in the invoice.

How do I void an invoice in Wafeq?

To void an invoice:

  1. Go to Invoices in the left side menu and find the invoice
  2. Click on Void

The invoice’s status will change to VOIDED and a credit note will be automatically created and applied on the invoice to reverse it.

Impact on your Profit and Loss report

When you void an invoice, you are reversing the revenue that was booked in the invoice. Your Profit and Loss statement will therefore show negative revenue in the month you voided the invoice.

A numerical example

Assume you've sent an invoice for 1,000 to your customer dated 1st of January and that you booked under the account Sales. Your Profit and Loss statement will show revenue of 1,000 under the Sales account for the month of January.

On the 1st of February, you decide to void the invoice. This will create a credit note dated 1st of February, against the Sales account as well. Your Profit and Loss report will therefore show a revenue of -1,000 for the month of February.

How do I choose the date to book the voiding?

To have more control over the credit note date and account, instead of voiding the invoice, you can create a credit note and choose the credit note date yourself. Then apply the credit note to the invoice to pay off the invoice.