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Banner Finance Plain and Simple – Check and Invoice Cancellation – OMG!
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Do you ever wonder whether you should void and re-establish an invoice or just void it? What about voiding a check? Should you re-establish the payable or create a new one? Depending on the reason for the void, there are a variety of ways to handle voids and one of the determining factors on which form to use is whether the invoice has been paid or not.
Invoice Has Been Paid
One key to remember is if the invoice has been paid, you MUST first use the Check Cancellation form (FAACHKS). This form allows you to decide whether you want to re-establish the payable or not as well as change the Cancel Date. The cancel date is rarely changed but may be if needed to post to a previous month for corrections. Be sure to watch your dates, particularly transaction dates, especially if you re-establish the payable (prior fiscal year transactions cannot be re-established since the prior year is closed).
In order to select “Re-establish Payable” or process the cancellation, you can either select the Options Menu/ or press Next Block from the FAACHKS data block. Selecting the “Re-establish Payable” option will put the invoice in incomplete and unapproved status, allowing the user to make changes to the invoice via the Invoice/Credit Memo (FAAINVE) form. Choosing not to re-establish the payable would put the invoice in canceled status. One example of when you may choose not to re-establish the payable is if the invoice is a duplicate or erroneous payment. If you cancel a check with multiple invoices where any of the invoices are not being re-issued, consider whether you want to re-establish the payables or not; you can either re-establish all of the payables and cancel the appropriate ones or just cancel the check and recreate the invoice(s) as needed.
Ellucian has modified Check Cancellation in Banner Finance 8.10 with four change request enhancements. FAACHKS will 1) display an error message when attempting to cancel a check that has previously been reconciled 2) provide an alert when the check is associated with an invalid C-FOAPAL element 3) provide a reason code for cancelling a check and 4) provide a revised label for the "Make Cancellation Permanent" button to "Process Cancellation" to be more intuitive.
Invoice Has Not Been Paid
It is always best if the invoice can be voided prior to being paid. Keep in mind, though, the invoice MUST go through the posting process BEFORE it can be cancelled. Once the invoice has been posted, there are a couple of forms which can be used to change invoice information. If you want to change the payment due date, put an invoice on hold, or remove an invoice from hold, use the Payment Control Form (FAAPAYC). This form does not re-open the invoice, leaving it in completed status after saving the change.
To make other corrections to an invoice OR to void an invoice prior to the check run, use Invoice/Credit Memo Cancel Form (FAAINVD). In order to make corrections, you will want to void and re-establish the payable. You can select “Re-establish Payable” or process the cancellation by either selecting the Options Menu/Access Cancel Date or pressing Next Block from the FAAINVD data block. Voiding the invoice and not re-establishing the payable will leave the invoice in cancelled status; voiding and re-establishing the payable will put it in incomplete and unapproved status.
A purchase order number on an invoice cannot be changed even if the invoice has been re-established. Also, while you can technically change the vendor by selecting a different vendor ID in the Check Vendor field on the Invoice/Credit Memo Header block of FAAINVE, it is important to note that the history in Vendor Detail History (FAIVNDH) will remain under the vendor associated with the invoice on the initial Invoice/Credit Memo key block. If these changes need to be made, you may want to consider whether the invoice should be voided and re-created.
Elements that can easily be modified are the address, amount, bank, due date, 1099 Tax ID and direct deposit override.
Cancelling Recurring Payables
Cancel a recurring payable that does not have a check associated with it by using the Invoice/Credit Memo Cancel Form (FAAINVD) as you would any other invoice. Be aware that the cancellation transaction does not update the Recurring Payables Form (FAARUIV).
To cancel a check associated with a recurring payable, use the Check Cancellation Form (FAACHKS). When you cancel the check, the form will not permit you to select the Re-establish Payable option. To ensure that all the accounting transactions related to this process are correct, you MUST cancel the recurring invoice as well as the check. From our experience, it is advisable to cancel the existing recurring payable series and create a new one for the balance of the payable.
For more information:
- Banner Finance 8.10 User Guide: Cancelling a Document After Final Approval (page 2-222); Cancelling A Recurring Payable (page 2-295)
- Banner Finance Release Guide 8.10: Check Cancellation Form (FAACHKS) Prevent Cancellation of Reconciled Checks (page 10); Check Cancellation Form (FAACHKS) Invalid FOAPAL (page 11); Check Cancellation Form (FAACHKS) Cancel Reason (page 12)