We often get questions from our Australian customers about whether to cancel or delete invoices in QuickBooks. So, I thought it might be helpful to talk about the differences and what they mean for your records.
Voiding an invoice
When you void an invoice, you're essentially cancelling it, but it still keeps a record in your system. The invoice amount changes to zero, which means it remains in your reports. This action will affect your accounts receivable and balance sheet, but the advantage is that you retain a history of the transaction. It’s a good option if you want to stop a payment process while still keeping track of what happened.
Deleting an invoice
On the other hand, deleting an invoice means you’re erasing it from your records entirely. While this might seem straightforward, it can complicate your financial tracking and may impact things like inventory/ stock. Be cautious with this approach, as it completely removes the invoice and could leave you without important records that might be needed later on.
Read the step-by-step instructions to void or delete transactions in our self-help article.
Notifications
Another thing to keep in mind is customer notifications. If you decide to make changes to an invoice and want your customer to be informed, remember to choose the "Save and send" option. Otherwise, they won’t receive any updates regarding those changes.
Inventory implications
If you're wondering what happens to your inventory or how unpaid payments are handled, here's the answer: voiding an invoice will return any linked items to your stock. Any payments associated with it will still be recorded as unapplied, so you can manage those later.
Of course, it’s always wise to check in with your ProAdvisor or accountant before making these kinds of adjustments. They can provide guidance that fits your unique situation. Some folks find it useful to void an invoice and then create journal entries to balance things out. This way, you're maintaining your financial integrity.
I hope this clears up some confusion around voiding and deleting invoices! If you have any further questions, especially on topics like handling bad debts or those pesky unapplied payments, feel free to hit ‘Reply’ and ask your question or leave a comment below for the community and our Product Experts to answer.
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