How to Cancel a Supplier Invoice | Latner Software Documentation

Cancelling a supplier invoice unwinds everything the invoice did - the billing it applied to a purchase order or sub hire order, and the bill it created in your accounting system - so you can start again from a clean slate when a supplier bills you incorrectly.

Overview

Suppliers send the wrong invoice more often than anyone would like: the wrong order, the wrong quantities, the wrong reference number. Cancelling is how you take that invoice back out of Latner without leaving the purchase order stuck at Invoiced.

You can cancel a supplier invoice at any status except Paid and Cancelled - so Open, Completed, Disputed and Approved invoices can all be cancelled.
Cancelling rolls back Qty Invoiced on every linked purchase order line, which normally moves the order back from Invoiced to Fully Received so it can be invoiced again.
On a sub hire order, the invoiced lines go back to Active, their invoiced totals are recalculated from the invoices that remain, and the sub hire order itself is reopened.
On a finance schedule, the instalment the invoice covered goes back to Uninvoiced.
If the invoice was successfully synced to Xero or MYOB, Latner deletes or voids the matching bill in that system too.
Cancellation Notes are compulsory, and they are kept on the invoice alongside who cancelled it and when.
Cancelling is one-way. The invoice keeps its number and stays on the Supplier Invoices list at status Cancelled - there is no un-cancel.

Before You Begin

Cancelling is permission-controlled, and the permission is checked against the branch the invoice belongs to.

Requirement	Where to Find It
Cancel Supplier Invoice permission, for the invoice's branch	Security › Configuration › Permission Groups › your group › Suppliers › Option
Cancel Supplier Credit Note permission, if you are cancelling a credit note rather than an invoice	Security › Configuration › Permission Groups › your group › Suppliers › Option
A supplier invoice that is not already Paid or Cancelled	Suppliers › Supplier Invoices

The two cancellation permissions sit together under Suppliers › Option, shown here on the Finance Payable group where both are switched off

Out of the box only the Administrator, Finance Manager and Branch Manager groups hold Cancel Supplier Invoice. If your accounts payable team needs it, switch it on for their group rather than moving people into a finance manager group.

Cancelling the Supplier Invoice

Step 1 - Open the Supplier Invoices screen

Go to Suppliers › Supplier Invoices and find the invoice you need to cancel. The Status column tells you straight away whether cancelling is still possible - anything showing Paid or Cancelled is out of reach. Click the Invoice # to open it.

The Supplier Invoices list - the Status column is the quickest way to tell which invoices can still be cancelled

Step 2 - Check the invoice before you cancel it

Open the invoice and read Financial Details. The Purchase Order Number tells you which order the cancellation will roll back, and Balance Paid tells you whether any money has already been recorded against it. The Details tab lists the lines that will be reversed.

Supplier Invoice 110 at status Open, raised from PO0023 - the purchase order named here is the one that gets rolled back

Step 3 - Choose Cancel Supplier Invoice

Click Options in the top right and choose Cancel Supplier Invoice. If you can't see the item at all, the invoice is Paid or already Cancelled, or your permission group doesn't hold the permission for that branch.

Options › Cancel Supplier Invoice sits below Dispute Invoice and disappears entirely once the invoice is cancelled

Step 4 - Read the warning

The Cancel Supplier Invoice dialog spells out what is about to happen: the billing applied to the related purchase order or sub hire order is rolled back, and the invoice is deleted or voided in any linked accounting integration. Nothing has changed yet at this point - Cancel closes the dialog and leaves the invoice alone.

The Cancel Supplier Invoice dialog - the warning names both effects of confirming, on the order and on your accounting system

Step 5 - Enter the cancellation notes and confirm

Type your reason into Cancellation Notes and click Confirm.

Cancellation Notes - required. The form won't submit without it, and the backend rejects the request as well. Write what a colleague reading the invoice in six months would need: which invoice replaces it, or why the supplier is reissuing.

Cancellation Notes is the only field on the dialog, and it is compulsory - Confirm shows "Required" underneath if you leave it blank

After Cancelling

Latner confirms with a Supplier Invoice Cancelled toast and reloads the invoice.

The invoice status changes to Cancelled and a Cancellation Details panel appears with Date Cancelled, Cancelled By and your Cancellation Notes.
Cancel Supplier Invoice, Complete Invoice and Dispute Invoice disappear from the Options menu, and Add Details and Add Purchase Order Details are greyed out - a cancelled invoice can no longer be edited.
The linked purchase order's Qty Invoiced goes back to what it was before the invoice, and the order's status is recalculated - typically back from Invoiced to Fully Received, ready to be invoiced again.
The cancelled invoice still appears on the purchase order's Supplier Invoices tab and on the Supplier Invoices list. It is a permanent audit record, not a deletion.
If the invoice had reached your accounting system, the bill there is deleted or voided in the same step.

The cancelled invoice - Cancellation Details records who cancelled it, when, and why

PO0023 after the cancellation - back at Fully Received with Qty Invoiced returned to 0 on both lines

There is no un-cancel. A cancelled supplier invoice stays cancelled, and its lines cannot be edited or reinstated. If the supplier reissues the bill, raise a new supplier invoice against the same purchase order - the reference number is free to reuse once the original is cancelled.

FAQs

Cancel Supplier Invoice isn't in the Options menu. Why?

Two reasons. Either the invoice is at status Paid or Cancelled, which hides the option entirely, or your permission group doesn't hold Cancel Supplier Invoice for the branch the invoice belongs to. Branch matters: the permission is checked against the invoice's branch, not your default one.

Can I cancel an invoice that has already been paid?

No. An invoice at status Paid is rejected with Unable to cancel a Paid invoice. An invoice becomes Paid when payments or allocated credit cover its total, so that has to be undone first: refund the payment, or remove the credit allocation. Either one drops the invoice back to Completed, and from there it can be cancelled.

Does cancelling remove the supplier payments recorded against the invoice?

No. Cancelling reverses the billing against the purchase order, sub hire order or finance schedule, and the accounting sync - it does not touch supplier payment records. Only fully paid invoices are blocked outright, so a part-paid invoice can still be cancelled with its payments intact. Check Balance Paid on the invoice before you confirm.

Can I reuse the supplier's reference number on the replacement invoice?

Yes. Latner only blocks a duplicate reference number against invoices that are not cancelled, so once the original is cancelled you can key the replacement with the same supplier reference. If the original is still live you'll see already exists for this Supplier and Reference Number instead.

I get "You can only cancel the latest invoice related to a Sub Hire Order." What does that mean?

Sub hire orders are billed forward in periods, so their invoices have to be unwound in reverse. If the order has been invoiced more than once, cancel the most recent invoice first and work backwards. The message names the invoice you need to start with.

What happens to the invoice in Xero or MYOB?

If the invoice reached your accounting system through a completed sync, Latner deletes it there when it is still in draft and voids it when it has been approved, so the bill stops affecting your payables either way. An invoice that was never synced successfully has nothing to undo. Check the Integration Syncs tab on the invoice if you need to confirm which happened.

How do I cancel a supplier credit note?

The same way, from the credit note itself: Options › Cancel Supplier Credit Note. It uses the same dialog and the same compulsory notes, but it needs the separate Cancel Supplier Credit Note permission, and because a credit note doesn't bill an order there is nothing to roll back - only the credit note's own status changes.

Should I cancel the invoice or raise a credit note?

Cancel when the invoice should never have existed in Latner - wrong order, wrong supplier, keyed twice. Raise a credit note when the supplier is genuinely crediting you for something they billed, because that leaves both documents in place and the credit can then be allocated against the invoice.

Watch the Demo

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