How to Cancel an Invoice?

English Template (1).png The method for canceling invoices varies based on several factors, such as whether the invoice is linked to tax authorities or whether it has been paid. Below, we review how to cancel invoices in each case with the following steps.

Cancelling Draft Invoices

Draft invoices are those that have been created but have not yet been finalized.

Steps to Cancel a Draft Invoice:

Click on "Sales" from the main menu.
Select "Invoices".
Open the draft invoice you want to cancel from the "Table View".
Click on "Delete".

Cancelling Finalized Invoices (If Not Linked to Any Tax Authority)

If the invoice is finalized (i.e., converted into an official accounting document) and your business is not linked to any tax authority such as ZATCA in Saudi Arabia or the Federal Tax Authority in the UAE, you can cancel the invoice by following the steps below.

Steps to Cancel a Finalized Invoice (Not Linked to Tax Authority):

Click on "Sales" from the main menu.
Select "Sales Invoices".
Open the finalized invoice you want to cancel from the "Table View".
Click on "Revert to Draft".
Then click on "Delete".

Cancelling Finalized Invoices (If Linked to a Tax Authority)

If the invoice is finalized (i.e., converted into an official accounting document) and your business is linked to a tax authority such as ZATCA in Saudi Arabia or the Federal Tax Authority in the UAE, you will not be able to delete the invoice directly. Instead, you need to follow the procedures below.

Steps to Cancel a Finalized Invoice (Linked to Tax Authority):

Click on "Sales" from the main menu.
Select "Invoices".
Open the finalized invoice you want to cancel from the "Table View".
Click on "Void".

This will automatically generate a Credit Note to negate the invoice amount and adjust the stock level. The invoice status will change to "Voided".

Cancelling Paid Invoices

To cancel a paid invoice, you must first handle the payment linked to the invoice, then proceed with the cancellation.

Steps to Cancel a Paid Invoice:

Click on "Sales" from the main menu.
Select "Invoices".
Open the paid invoice you want to cancel from the "Table View".
Payments will appear at the top. Click on "Delete Payment" or "Unapply Payment".

To cancel the invoice after deleting the payment:

If Not Linked to a Tax Authority:
1. Click on "Revert to Draft".
2. Then click on "Delete".
If Linked to a Tax Authority:
1. Click on "Void".