User has an invoice from a closed period (April) that needs to be voided now. CORE does not allow voiding such an invoice.
By default, posted invoices cannot be voided or deleted in CORE. Also, you cannot void invoices after having closed your books of accounts for that period.
The Closing Date set in the Settings > Company > Information screen in CORE prevents unauthorized or accidental editing of the accounting data and transactions for the period before that date. If you are sure that the changes to be made do not affect the closing of accounts in any way, you can temporarily change the Closing Date for your company (password-protected). Then you can make the necessary changes and restore the Closing Date. However, in this case as the accounting is affected by the changes to the invoices, we do not recommend doing so.
This can be handled by creating general journal entries instead. That way you have a paper trail and the General Journal that backs up the reasons for the discrepancies. Here is how it should be done according to GAAP:
- If the client has not paid the invoice yet and is not going to pay it, you can write it off as a bad debt expense.
- Debit bad debt expense (income statement)
- Credit allowance for doubtful accounts (balance sheet)
- If the client has paid the invoice, you have to put a credit memo through because the company has already received cash in the bank account.
- Debit sales returns/allowances (income statement)
- Credit client credits/deposits (balance sheet)
- If the client wants the cashback, the bank transactions will be:
- Debit client credits/deposits (balance sheet)
- Credit bank account/cash (balance sheet)
Note: If you are making journal entries, they must not be entered into the key control accounts in CORE (A/R, A/P, WIP) because those accounts are fed via sub-ledgers.