Skip to content

Reverting Invoices

What is invoice reversal?

Once an invoice has been approved this cannot be undone, to allow for corrections you can revert an invoice.

When you revert an invoice:

  • A new invoice is automatically created with the negative amount of the original (example: if the original was £50, the reversal will be −£50)
  • The new invoice is automatically approved and ready for payment processing
  • The original invoice file is hidden from the supplier and owner portal
  • All notes and transaction history are preserved

When to revert

Reversal is ideal for these common scenarios:

Duplicate invoices

If the same invoice from a supplier was processed twice, revert one to cancel it out.

Incorrect amounts

If an invoice was entered with the wrong amount or quantity, revert it and create a new invoice with the correct details.

How to revert an invoice

Step 1: Navigate to the invoice

Open the invoice you need to revert. You can find it by:

  • Searching in the invoices list
  • Following a link from the supplier's profile
  • Using the invoice ID

Step 2: Open the revert dialog

On the invoice details page, click the Revert button in the toolbar (indicated by an undo icon). This opens a confirmation dialog.

Step 3: Add notes

The revert dialog allows you to add two types of notes:

  • Internal Note - For your team's records only. Use this to document why the reversal was needed (e.g., "Duplicate invoice - same PO#", "Amount was £500 not £550")
  • Note to Supplier - This may be shared with the supplier. Use this to politely explain the reason (e.g., "We received this invoice twice")

Step 4: Confirm the reversal

Click the Revert button to complete the reversal.

Permission Required

You must have Finance Invoices Edit permission to revert invoices.

What happens when you revert

The reversal invoice

A new invoice is created with:

  • Amount: Negative of the original invoice total
  • Line item: Single entry describing it as a reversal (e.g., "Reversal of INV-2024-001")
  • Status: Automatically approved (no review needed)
  • External ID: Original ID with "_Reversal" suffix for tracking (e.g., "INV-2024-001_Reversal")
  • Supplier & Owner: Same as the original invoice

The original invoice

  • File visibility: Hidden from supplier and property manager portals
  • Data: Remains visible
  • Link: Connected to the reversal invoice showing the relationship

Important limitations

Cannot revert a reversal

If an invoice has already been reverted, you cannot revert it again. This prevents accidental double-reversals.

Original file becomes hidden

Once an invoice is reverted, its file is no longer visible in supplier portals or property manager self-service areas. This reduces confusion but still allows your finance team to access it for compliance.

Common scenarios

Scenario 1: Duplicate invoice from supplier

Situation: Your supplier sent the same invoice twice. You approved and paid both by mistake.

Solution:

  1. Open the second invoice (the duplicate)
  2. Click Revert
  3. Internal Note: "Duplicate - #INV-001 already paid on [date]"
  4. Note to Supplier: "We received and approved this invoice already. This appears to be a duplicate of invoice #INV-001."
  5. Click Revert to create the negative invoice

Result: The second invoice is reversed, the payment is offset, and your records are balanced.

Scenario 2: Incorrect invoice amount

Situation: An invoice for £500 cottage maintenance was entered as £5,000.

Solution:

  1. Open the incorrect invoice
  2. Click Revert
  3. Internal Note: "Data entry error - should be £500 not £5,000"
  4. Note to Supplier: "We need to correct the amount on this invoice. You charged £5,000, but the quote approved was £500."
  5. Click Revert to create the negative (−£5,000) invoice - we are now back to zero
  6. Create a new invoice for the correct amount (£500) as usual

Result: The overcharge is reversed, the correct amount is processed, and the error is documented.