Delete a sales invoice

This explains how to delete a sales invoice entered by mistake. How you delete the invoice depends on whether it's been paid or included in a VAT return.

How this works

You can only delete invoices when they are not paid and have not been included on a VAT return.

Once deleted the invoice status shows as Void. For auditing purposes you cannot re-use the invoice number.

If the invoice is

  • unpaid or a draft, then delete as required.
  • paid invoices, then remove the link to the payment or credit note before deleting it.

  • included on a VAT return, you cannot edit or delete the invoice. Reverse it with a credit note instead.

    If you've only created the VAT return and not yet submitted to HMRC, then all you need to do is delete the draft VAT return first.

    1. From Reports, choose VAT Returns.

    2. Select the Delete icon next to the draft VAT return.

    Once the invoice has been included on a VAT return and submitted to the Revenue, it cannot be deleted. If you've made a mistake, you'll need to reverse the invoice with a credit note to cancel out the value. The credit note is the included on your next VAT return.

    On the cash scheme, it is the payment and not the invoice that is included on the VAT return.

    Simply remove the payment from the invoice and delete as necessary.

Delete an invoice

  1. From Sales, choose Sales Invoices.
  2. Select the check box next to the relevant invoice.
  3. Select Delete from the toolbar.

  4. Enter the reason for deleting the invoice.
  5. Click Yes.

The invoice status now shows as Void.

Remove a payment from an invoice

To delete a paid invoice, remove the link between the payment and the invoice.

The invoice is Unpaid and you can now delete it.

  1. From Banking, select the bank account the payment was paid into.
  2. From the Activity tab, open the payment used to pay the invoice.

  3. From the bottom of the payment window, clear the check box next to the relevant invoice and Save.

    If the payment covers multiple invoices and you un-allocate one of them, the remaining invoices are not affected.

  4. Choose Yes to save the payment as a payment on account. This allows you to use the payment to pay another invoice.

    If you use the cash basis scheme, choose the appropriate VAT rate.

The invoice status now shows as Unpaid. You can now delete the invoice.

Unallocate a credit note

When you create a credit note and allocate it to an invoice, we create an allocation transaction. This transaction holds the details of linked credit notes and invoices.

Before you can delete an invoice that’s been paid using a credit note, you must edit the allocation transaction.

  1. From Contacts, then select the required supplier.

  2. From the Activity tab, open the relevant customer allocation transaction.

    The allocation transaction date is the date you allocated the invoice and credit note.

  1. If the credit note is allocated to a single invoice, clear the check boxes for both the invoice and the credit note.

    If the credit is allocated to more than one invoice,

    • Clear the check box for the invoice being unallocated.

    • Amend the amount outstanding on the credit note. Select and adjust the Amount to Pay to match the total of the remaining allocated invoices. For example, a credit note with a total value of 180 is allocated to 2 invoices, one for 60 and one for 120. The £60 invoice has been unallocated, so adjust the Amount to Pay to -120.00.

    If you allocated multiple transactions at the same time, and you only want to un-allocate one invoice and credit note, the remaining transactions are unaffected.

  2. Select Save.

The invoice status now shows as Unpaid. You can now delete the invoice.

Reverse an invoice included on a VAT return

Once an invoice has been included on a VAT return you cannot delete it. You'll need to reverse the invoice by creating a credit note.

  1. Create a credit note from the invoice. We automatically create an identical credit note and use the credit note to pay the invoice.
  2. Create a new invoice with the correct details if required.

Credit an invoice

  1. From Sales , select Sales invoices.

  2. Open the relevant invoice, then select Add credit note.

    The credit note will have the same details as the original invoice. As you’re reversing the invoice, you shouldn’t change these details.

  3. If required, enter a reference. For example, Invoice reversal.
  4. Enter any notes, and Save.

We automatically link the credit note to the invoice and show both as paid.

The next time you run a VAT Return, the credit note is included and your VAT liability is adjusted accordingly.