Enhanced Voiding Invoices

Stores occasionally need to void previously completed invoices, including Account Payments. Voids should conform to accounting best practices and allow stores to balance all revenue types. They should also provide traceability for enhanced fraud detection. With this update, stores now have enhanced capability to do this. Paladin’s updated voids feature provides the following benefits and more:

• Voids reverse the original invoice and payment type by creating an inverse transaction on the day the void is executed. This is to prevent fraud and ensure maximum traceability in the system.
• Paladin allows voids for all payment types.
• Stores may now review voided invoices in their full detail.
• Historical reports now remain valid
• Historical data uploaded to accounting systems is accurate.
• Voided account payments will not be visible to the customer.

This article provides information and instruction on the following:

• • Paladin Configuration Option
  • Void an invoice
  • Edit an invoice
  • Create Register Balance report
  • Create Voided Transaction report
  • Create Check Deposit report
  • Create GL Summary report
  • Accounting Details

Paladin Configuration Option

By default, the voiding invoices option is set in Paladin Configuration.

Note: Contact Paladin Support to disable/uncheck this option.

1. In Paladin, from the main menu, select File > Setup.
2. Select the Invoice (Store) tab.
3. At the bottom of the tab, by default, Voided invoices will create a reverse transaction is checked. 

Note: In red text, a note is provided stating that disabling the feature will alter historical data and possibly create an imbalance in the client’s General Ledger.

Figure 1: Paladin Configuration setup

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Void an invoice

To void an invoice:

1. In Paladin, from the top ribbon, select the Customers module.
2. Enter or select a customer from the Customer list.
3. Press Enter.
4. Select the Credit tab.
5. On the top of the Sales History pane, click the Customer Friendly magnifying glass.

For an example, take note of the Sales totals at $375.21.

Figure 2: Sales History pane/User Friendly magnifying glass

6. In the Recent Sales History window, highlight the invoice to be voided.
7. On the bottom of the window, click Edit / Void.

Figure 3: Recent Sales History/Edit / Void

The Invoice Edit/ Void window opens where you can perform the following:

1. 1.  Correct the account the invoice was charged to. The main function for this is to correct the account the invoice was charged to. Select a new customer from the Customer list. The address information below the Customer list will change accordingly (this is read-only and is provided to ensure the correct customer was selected). 
   2. Assign a PO and add a memo. Assign and provide a memo for that PO in the PO/Memo field.
   3. Include an authorized signer. The Authorized Signer list, as noted in red, is only for Charge Transactions.
   4. Add a project. Select a project from the Project list.
   5. Open information on voids. Clicking Learn More opens the Best Practice: Voiding Invoices KBA so that clients can read best practice and advantages of this feature.

8. If there are no changes to the customer, press Void, This creates an inverse transaction.
9. If there is a change to the customer, press Update.

Note: In the case of an updated invoice, no tests are performed to check if the new account allows the payment type used on the original invoice or if the new account is within credit limits of the invoice.

Figure 4: Invoice Edit / Void window

The Confirm Edit/Void Invoice window opens.

Figure 5: Confirm Edit/Void Invoice window 

10. Enter a manager password, then click OK.

Optional: Paladin provides Remote Manager Approval, that when set up in Paladin, sends text messages to the manager’s mobile phone describing the need for approval along with a link to the Paladin Remote Manager Approval website where they can either accept or deny the approval request. For more information, refer to the Remote Manager Approval KBA. If Remote Manager Approval is not set, just the manager password is required.

The invoice is removed from the Recent Sales History window.

Note: If you are processing credit cards through Worldpay or BlockChyp, and void a credit or debit card transaction, Paladin attempts to refund that transaction. If there is an issue, the Void Transaction window opens stating that you will need to contact your credit card processor to reverse the invoice.

Figure 6: Contact credit card processor message

Note the Sales History example change (Figure 2). The voided invoice total with $161.11 removed is reflected.

Figure 7: Sales History pane/Change in Sales totals

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Edit an invoice

There may be times an invoice needs to be edited. A good example of this is reconciling “bad debt” when closing an uncollectible account. With this, “Bad Debt” is written in the PO/Memo box, and Edit is pressed, making the corresponding change to the PO Status of the transaction/invoice.

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Create Register Balance report

To create a Register Balance report:

1. In Paladin, on the top ribbon, select the Reports module. 
2. In the Report Area pane, select Sales Analysis > Daily Balancing.
3. In the Report List pane, select Today’s Register Balance.
4. In the Choose Report pane, press F12 Next.
5. In the Report Settings pane, the Beginning and Ending date reflect the current day’s date.
6. By default, Exclude Voided Invoices? is checked. Uncheck to have voided invoices shown on the report.

Figure 8: Today’s Register Balance/Exclude Voided Invoices?

7. In the Sorting Options pane, press F12 Run Report.

A PDF of Today’s Register Balance Master opens.

If you chose to exclude voided invoices, under the Selection area, Exclude Voids has an X next to Yes, and the invoice does not show any void values.

Figure 9: Voids excluded

If you chose to include voided invoices, under the Selection area, Exclude Voids has an X next to No, and the invoice shows void values.

Figure 10: Voids included

The void shows as a negative value on the report.

Figure 11: Void reflected on register balance report

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Create Voided Transaction report

The voided Transaction report includes the compensating transaction.

To create a Void Transaction report:

1. In Paladin, on the top ribbon, select the Reports module. 
2. In the Report Area pane, select Sales Analysis > What I Need To Know.
3. In the Report List pane, select Transaction Report.
4. In the Choose Report pane, press F12 Next.
5. In the Report Settings pane, enter or select an InvoiceDate Beginning and Ending date.
6. In the Additional Settings pane, select NoteField from the Keyword Search list.
7. In the text box, type Voided.

Figure 12: Keyword Search

8. In the Sorting Options pane, select any variables, then select F12 Run Report.

A PDF file opens showing that an invoice was voided, the date of the void, and the employee who performed the void.

Figure 13: Transaction Report/Void transaction 

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Create Check Deposit report

Voided checks will no longer show if Exclude Voided Transactions? is selected in the Check Deposit report and Register Balance report.

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Create GL Summary report

To create a GL Summary report:

1. In Paladin, from the top menu, select Main > Data Viewer.
2. Select the GL Summary tab.
3. Select dates from the Date Range lists.
4. Click Get Data.
5. The report opens and can be saved to your files by selecting an export type from the list, then press Export.

The report shows the void in the CR column.

Figure 14: GL Summary report

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Accounting Details

• Paladin creates an inverse transaction on the current date. This undoes the changes to SOH, Inventory Asset, Revenue, COGS, payment type, etc. that were made by the original invoice.
• For example, the original transaction includes a debit entry to “COGS Inventory” and a credit entry to “Inventory Asset”. The inverse transaction, created using the void feature, creates a credit entry to “COGS Inventory” and a debit entry to “Inventory Asset”. Essentially undoing the original transaction, and compensating for accounting information previously recorded in the general ledger.
• The inverse transaction also reverses the payment type associated with the original transaction. The original transaction includes a debit entry to “Cash” and a credit entry to “Revenue”. The inverse transaction creates a credit entry to “Cash” and a debit entry to “Revenue”.
• If you are processing with Worldpay’s NETePay or BlockChyp, and void a credit or debit card transaction, Paladin attempts to refund that transaction. Paladin strongly recommends double checking to make sure the refund was successfully processed in the portal after a void.
• The nightly GL upload to external accounting systems will contain the offsetting transactions to maintain accurate accounting.
• The Transaction Report includes the compensating transaction
• The original and compensating invoices are both filtered out of the automatically generated customer statement.

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