This article applies to Aiwyn Practice.
The Accounts Receivable transactions ledger and Reverse Invoice are available only to firms on Aiwyn Practice. On Aiwyn Payments, see How to change a sent invoice.
This page lists the ways to correct a sent invoice in Aiwyn Practice. For each one, it shows what it does to the invoice, to the client's accounts receivable (AR) balance and to WIP, and its limits. Use it to check which correction fits before you record one.
None of these corrections edits the sent invoice. The invoice your client received stays as sent, and the correction is recorded alongside it. For the steps, see Record credit adjustments, debit memos, and write-offs and Adjust a sent invoice balance.
Corrections at a glance
| Correction | Where you start it | Effect on the invoice | Effect on the client's AR balance | Effect on WIP | Use it when |
|---|---|---|---|---|---|
| Write-off... | Accounts Receivable > New transaction | Outstanding goes down by the amount you apply to the invoice | Goes down | No change | The invoice was correct, and your firm has approved not collecting the balance |
| Credit adjustment... | Accounts Receivable > New transaction | Outstanding goes down by the amount you apply to the invoice. No change while the credit is unapplied. | Goes down once applied | No change | The invoice was for too much, or your firm is giving a courtesy discount |
| Reverse Invoice | Invoices, in the invoice's actions menu | The whole invoice is canceled and marked Reversed | The invoice's amount and any late fees on it are removed | The invoice's time and expenses return to WIP as unbilled | The invoice shouldn't stand as sent, such as the wrong client, missing work or a duplicate |
| Change a payment's allocation | The payment in the Transactions list | The amount moves from one invoice to another of the same client. | No change | No change | A payment was applied to the wrong invoice of the client. |
| Disable transaction | The payment in the Transactions list | Invoices the payment paid reopen by that amount | Goes up by the payment amount | No change | A payment you recorded manually shouldn't exist, such as a duplicate |
| Set as non-sufficient funds | The payment in the Transactions list | Invoices the payment paid show as unpaid again | Goes up by the payment amount | No change | A payment you recorded manually failed outside Aiwyn, such as a bounced check |
| Issue Refund | Accounts Receivable > Payment History | Invoices the payment covered reopen | Goes up by the refunded amount | No change | Money from a payment made through Aiwyn needs to go back to the client |
Only reversing an invoice returns work to WIP. A WIP write-off isn't an Accounts Receivable transaction. To remove unbilled work before you invoice it, see Write down or write off unbilled work.
Write-off, credit adjustment and debit memo
You record these from the chevron (▾) on New transaction in Accounts Receivable. Each one is its own transaction on the client's account. To access the workflow, a user must be able to open Accounts Receivable and have View the Billing module, View the Payments module, View payment history and View payments.
| Write-off | Credit adjustment | Debit memo | |
|---|---|---|---|
| Option under New transaction | Write-off... | Credit adjustment... | Debit memo... |
| What it records | Removes an uncollectible balance from the client's account without recording a cash receipt | Adds a credit to the client's account | Offsets a returned or reversed payment, such as a bounced check or failed ACH payment |
| Typical reasons | A hardship adjustment or a small balance write-off your firm has approved | A billing error or a courtesy discount. Also used when an incorrect entry left the client owing too much. | A returned or reversed payment. |
| Fields | Client, Note, Transaction date, Total write-off amount | Client, Note, Transaction date, Total credit adjustment amount | Client, Note, Transaction date, Total debit memo amount |
| Required fields | Client. A write-off note isn't required, but recording the reason and approver preserves the approval record. | Client | Client, Payment transaction to apply the debit memo to. |
| What you can apply it to in Allocation | The client's open invoices and debit memos | The client's open invoices and debit memos | Payments and credits with an unapplied balance. It isn't applied directly to an invoice. |
| Can be saved without applying it | Yes. It counts toward the Unallocated badge until you apply it. | Yes. It counts toward the Unallocated badge until you apply it. | No, you must apply a debit memo to an unapplied payment in order to create and save the debit memo. |
| Allocation limits | No more than the remaining balance of the item you apply it to. No negative amounts. | No more than the remaining balance of the item you apply it to. No negative amounts. | No more than the remaining balance of the item you apply it to. No negative amounts. |
| Allocation indicator | Filled green when fully applied, yellow when partly applied and empty when unapplied | Filled green when fully applied, yellow when partly applied and empty when unapplied | Filled green when fully applied, yellow when partly applied and empty when unapplied |
| Column in the Transactions list | Credit Amount | Credit Amount | Debit Amount |
| Status in the Transactions list | Issued | Issued | Issued |
| Effect on the invoice's Outstanding | Goes down by the amount applied to the invoice | Goes down by the amount applied to the invoice | No direct effect. For a returned payment, removing the payment's invoice allocation reopens the invoice; the debit memo then settles the payment's unapplied balance. |
| Effect on the client's AR balance | Goes down by the amount applied | Goes down once applied | Goes up until payments or credits settle it |
| Effect on WIP | No change. The work stays billed. | No change. The work stays billed. | No change |
| After you save | Can't be changed or deleted. Disable the transaction or record an offsetting transaction to correct it. | Can't be changed or deleted. Disable the transaction or record an offsetting transaction to correct it. | Can't be changed or deleted. Disable the transaction or record an offsetting transaction to correct it. |
| What the client sees | Reduced invoice amount | Reduced invoice amount if applied to an invoice or ability to add an unapplied credit to unpaid invoice(s) | The debit memo is internal and doesn't appear in the client portal. For a returned payment, the client sees the reopened invoice and can pay it again. |
| Access | View the Billing module, View the Payments module, View payment history and View payments | View the Billing module, View the Payments module, View payment history and View payments | View the Billing module, View the Payments module, View payment history and View payments |
To correct one of these transactions, either disable it or record an offsetting credit adjustment or debit memo and give the reason in Note. Use a credit adjustment if the incorrect entry left the client owing too much. Use a debit memo to reverse funds off of an invoice that had been paid outside of Aiwyn but the payment failed or bounced. A disabled transaction remains visible for the audit trail, any affected invoice amount reopens, and the action can't be undone in Aiwyn. See Why AR transactions are corrected, not deleted.
Reverse Invoice
| Item | Details |
|---|---|
| Where | Reverse Invoice in the invoice's actions menu (⋯) in Invoices |
| What it does | Cancels the whole invoice. You can't reverse part of an invoice. |
| What you enter | A reason. Aiwyn logs it with your name and the date and time. |
| Effect on the invoice | Marked Reversed in Accounts Receivable. [SME to confirm: whether the invoice stays in the Invoices list or is removed from it.] |
| Effect on the client's AR balance | The invoice no longer counts toward the balance. Any late fees on the invoice are reversed too. |
| Effect on WIP | The invoice's time and expenses return to WIP as unbilled. |
| Draft invoice | The invoice's draft is restored in Draft Invoices with its line items, write-ups and write-downs, and edited descriptions. You can correct and send it, or delete it. |
| Payments | Reversing doesn't refund or move a payment. |
| Which invoices can be reversed | A posted invoice that was created from an Aiwyn draft invoice and has no payments applied. A zero-amount invoice can always be reversed. If work from the invoice is now on another draft invoice, Aiwyn lists the conflicting drafts and doesn't reverse the invoice. |
| Notification | Your firm is notified. |
| Permission | Only users with permission to reverse invoices see Reverse Invoice. |
Corrections to a payment on the invoice
These actions correct a payment, not the invoice itself. Each one changes how much of the invoice is paid.
| Action | Where | Applies to | What it does | Limits |
|---|---|---|---|---|
| Change the allocation | Open the payment from the Transactions list, and change the Allocation section | A payment applied to the wrong invoice | Moves the payment's amount to the invoice you select. The payment itself doesn't change. | You can apply a payment only to the same client's invoices. To move a payment to another client, disable it and record it again for the right client. |
| Disable transaction | The payment's transaction in Accounts Receivable | Payments recorded manually, such as cash, check and manually keyed ACH | The payment stops reducing the client's balance, and invoices it paid reopen by that amount. It stays in the list with the status Disabled. | No money moves, and the client isn't emailed. You can't undo it or reuse the payment. Payments made through the payment portal and invoices can't be disabled. |
| Set as non-sufficient funds | The payment's transaction in Accounts Receivable | Payments recorded manually | The amount goes back onto what the client owes, and invoices the payment paid show as unpaid again. | Debit memos should only be applied to payments that have failed. First remove the payment from the invoice then apply a debit memo to the payment object. |
| Issue Refund | The payment's row in Payment History. You can't start a refund from the Transactions tab. | Payments made through Aiwyn. Payments recorded manually can't be refunded through Aiwyn. | Returns the money to the client's card or bank account, and reopens the invoices the payment covered. The payment shows Refund Pending, then Refunded. Your firm and the client both get a confirmation. | Full refunds only, and one refund per payment. The payment must have posted, can't be in an open dispute, and can't be older than 180 days. Bank (ACH) payments can be refunded only after 3–5 business days, and only if your firm has bank-payment refunds turned on. Refunds under $0.50 aren't processed. You need permission to issue refunds. |
Related
- How to change a sent invoice
- Adjust a sent invoice balance
- Record adjustments, memos and write-offs
- How write-offs differ from credit adjustments
- Why AR transactions are corrected, not deleted
- Record and allocate payments
- How allocation determines a client's true outstanding balance
- Transactions list reference
- Invoice status reference
- Payment history and payment plans reference
- How work enters and leaves WIP
- Write down or write off unbilled work