How to Add, Edit, and Delete Past Invoice

Recording past customer invoices allows businesses to establish outstanding Accounts Receivable (AR) balances from transactions that were created before the cut-off date or go-live date. This process is commonly performed during system migration, opening balance setup, or when transferring records from a legacy accounting system.

Recording past invoices contributes to the opening Accounts Receivable balances and supports transaction-level reporting.

Depending on business requirements, past transactions may be recorded either as:

• Consolidated balances per customer, or

• Itemized historical documents based on original invoice references

When recording historical transactions, verify that:

• The transaction date is earlier than the cut-off date or accounting start date

• Outstanding balances are verified against prior accounting records

• Related historical payments, credit notes, or debit notes should also be considered to help maintain accurate customer balances.

The Accounts Receivable opening balance is derived from the net effect of:

• Past Customer Invoices

• Past Customer Debit Notes

• Past Received Payments

• Past Customer Credit Notes

Only outstanding balances as of the cut-off date should be recorded.

Scenario:

Your company is migrating from a legacy accounting system to QNE Optimum for the January to December 2015 financial year. As part of the migration, the company needs to record all unpaid customer invoices dated before January 1, 2015, so that customer balances and Accounts Receivable reports remain accurate in the new system.

Some customers have a single outstanding balance, while others require individual historical invoices to be recorded for tracking and reconciliation purposes.

Prerequisites:

• Customer master records must already exist in the system.

• The financial year and opening balance period must already be configured.

• Outstanding customer balances must be verified against the previous accounting records before migration.

• The user has permission to create Past Invoices.

• Historical invoice schedules or migration documents are available for reference.

Procedure 1: Recording a Past Invoice

1. Prepare the list of outstanding customer invoices from the legacy records or prior accounting system.

2. Verify that the invoice balances represent unpaid amounts as of the cut-off date.

3. Review whether the invoices will be recorded as:

   • Consolidated balances per customer, or

   • Individual historical invoice transactions

4. Confirm that the transaction dates of the past invoices are earlier than the financial period start date or cut-off date.

5. In the navigation pane, go to Customer > Past Invoices.

   • Note: If the Quick Create Icon (the one inside the red box) is highlighted, clicking Past Invoices will immediately redirect you to the new Past Invoice transaction form. If the Quick Create Icon is not highlighted, you will be directed to the Past Invoices Listing instead.

• From there, select the New button to create a new Past Invoice transaction.

6. Select the customer and Enter applicable historical invoice information such as:

• INV #

• Reference No.

• Description

• Doc. Date (Enter or verify the document date for the historical invoice).

• Balance

• Tax Code

Note: If Tax/VAT details are entered for historical reference purposes, the VAT portion does not generate a separate posting to the VAT General Ledger account because only the outstanding receivable balance contributes to the Accounts Receivable opening balance.

7. Review the entered amounts carefully and save the transaction.

8. Repeat the process for all remaining outstanding customer invoices.

9. After all entries are completed, review the reflected opening Accounts Receivable balance in General Ledger > Opening Balances

10. Verify the recorded balances match the historical records.

Procedure 2: Validation of Recorded Past Invoice

1. After saving the transaction, verify that:

• The Past Invoice is saved successfully.

• The Past Invoice number is generated or displayed correctly.

• The transaction displays the correct outstanding invoice balance.

• Verify that the Past Invoice appears in the Past Invoices List.

Procedure 3: Editing a Past Invoice

1. Go to Customer > Past Invoices, then select the Doc # of the Past Invoice that you want to update.

2. Once opened, make the required changes, then click Save. 

Procedure 4: Deleting a Past Invoice

1. In the Past Invoices List View, identify the document you wish to delete. Hover your cursor over the document and right-click on it. Then click Delete to remove the transaction.

2. Verify that the Past Invoice no longer appears in the Past Invoices List.

3. Preferred Method: If the Past Invoice is no longer required, click Cancel instead. This preserves the transaction history while marking it as inactive.

Application (Use Cases)

Past Invoices are used to:

• System Migration
  Transfer historical customer invoices from a legacy accounting system.

• Opening Balance Setup
  Establish opening Accounts Receivable balances during system implementation.

• Customer Transaction History
  Reconstruct historical customer invoice records after migration.

• Receivable Continuity
  Maintain continuity of invoice tracking and collection activities after go-live.

• Historical Reporting
  Support financial reporting that requires historical invoice visibility.

• Accounts Receivable Accuracy
  Improve the accuracy of customer balances and outstanding receivable records.
  
  System Scope: QNE Optimum