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Edge Case: Voided Invoices with GL Postings

Last reviewed: 2026-04-01

Scenario

A customer voids an invoice that has already been posted to the General Ledger (GL). They're confused about the impact on their financial statements and whether the void was "complete."

How Voiding Works in Finora

When an invoice is voided:

  1. A reversal journal entry is created — this is a new JE that exactly reverses the original invoice's GL impact (debits become credits, credits become debits)
  2. The invoice status changes to "Voided" — it remains visible in the invoice list but is clearly marked
  3. The COA balances are updated — revenue is reduced, accounts receivable is reduced, and VAT (if applicable) is reversed
  4. The original invoice is NOT deleted — it persists for audit trail purposes

What the Customer Sees

  • The voided invoice appears in the invoice list with a "Voided" badge
  • The Audit Log shows a "Void" action with the reason
  • The P&L reflects the reversal (revenue decreases)
  • The Balance Sheet reflects the reversal (accounts receivable decreases)

Common Concerns

"The voided invoice is still showing in my invoice list"

This is correct — voided invoices are not deleted. They remain for audit trail compliance. The "Voided" status makes them clearly identifiable. They do not contribute to revenue totals.

"My revenue dropped after voiding"

Yes — the void creates a reversal JE that reduces revenue by the invoice amount. This is the correct accounting treatment. If the invoice was issued in error, the revenue should not have been recognised.

"I voided an invoice but the customer already paid"

If payment was received before the void, you have a receipt recorded against the invoice. The void reverses the invoice but NOT the receipt. You may need to issue a credit note or refund. Escalate to Tier 2.

"Can I un-void an invoice?"

No — voiding is permanent. If you need to re-issue the same invoice, create a new one with the same details. The voided invoice and its reversal JE remain in the system.

"I see two journal entries for the same invoice"

Correct — the original invoice created one JE (debit A/R, credit Revenue), and the void created a reversal JE (debit Revenue, credit A/R). Both are visible in the Audit Trail. The net effect is zero.

Impact on Tax

  • VAT: If the invoice included VAT, the void reverses the Output VAT recognised. This reduces the VAT liability for the period.
  • WHT: If the customer deducted WHT when paying, the void does not automatically reverse the WHT credit. Escalate to Tier 2 for WHT certificate handling.

Escalation

  • Tier 1: Explain how voiding works; confirm the reversal JE is present
  • Tier 2: Voided invoice with existing payment (receipt); WHT certificate on voided invoice
  • Tier 3: Void did not create a reversal JE; COA balances incorrect after void