Editing and Deleting Documents: The Impact of Modifying Invoices on Settlements with Counterparties, and a Step-by-Step Review of Outstanding Balances

In everyday trade, managers and cashiers regularly process goods, accept prepayments, issue outgoing invoices, and handle payments through bank accounts and cash registers. Situations often arise when, after a transaction has been recorded, it becomes necessary to adjust the quantity of goods in a document, change the selling price, return part of the goods, or cancel a document issued by mistake. In such cases, several questions arise: how to correctly delete an invoice when payments have already been recorded against it; why changing a price or exchange rate creates an apparent debt or advance payment for a customer; how to reverse an incorrectly recorded debt repayment; and how to correct financial documents when the cash register day or accounting period has already been closed.

1. Basic Concepts and How Documents Are Linked in Torgsoft

To ensure transparent accounting, Torgsoft clearly distinguishes between two types of documents:

• Inventory documents (incoming invoice, outgoing invoice, sale, product return, write-off documents) — record the physical movement of goods or a change in ownership at a specific accounting center.

• Financial documents (cash order, payment order, bank statement, unidentified payment) — record the movement of funds through a cash register or bank account.

Settlements with customers and suppliers are based on the double-entry principle of the goods and cash balance: an inventory document creates or changes the amount owed (for example, posting an outgoing invoice increases the customer's debt to the store), while a financial document settles that obligation in full or in part.

Two key forms are used to track settlement balances in Torgsoft:

1. Balance with Partners — a summary view showing the total outstanding balance (who owes us or whom we owe) at the current moment or over a selected period, broken down by business partner and currency.

2. Settlement Card and Partner Balance Breakdown — detailed reports showing a chronological record of all inventory and cash transactions, including how each payment is linked to the corresponding invoice.

2. What Happens to Outstanding Debts When Documents Are Edited or Deleted

When a document is edited or deleted, the system automatically recalculates the business partner's balance. However, the final result depends on whether financial documents have already been recorded against it.

Editing or Deleting an Unpaid Invoice

If an outgoing or incoming invoice has no recorded payments, deleting it completely cancels the associated debt in Balance with Partners. If the quantity or price of goods in such an invoice is changed, the business partner's outstanding balance is immediately adjusted to reflect the new document total.

Editing or Deleting a Paid Invoice

If an invoice has been paid in full or in part, adjusting it without changing the corresponding financial document creates a discrepancy between the value of goods and the payments received:

• Reducing the invoice amount after payment: if the price of goods is reduced or an item is removed from an outgoing invoice after payment has been recorded, the value of the goods shipped decreases, while the financial document retains its original amount. As a result, the business partner has an overpayment (advance payment) in Balance with Partners.

• Increasing the invoice amount after payment: if additional goods are added to a paid invoice, the payment already received covers only part of the new total, and the business partner develops an outstanding debt.

• Attempting to delete a paid invoice: Torgsoft has built-in protection against the loss of financial data. When you attempt to delete an incoming or outgoing invoice with linked payments or expenses, the software blocks the operation and displays a message stating that deletion is prohibited until the associated financial documents have been deleted or unlinked.

3. Answers to Common Business Questions

How Can You Reverse an Incorrectly Recorded Debt Repayment or Payment?

 Question: a salesperson or accountant accidentally recorded a debt repayment for the wrong customer or entered an incorrect amount. How can the transaction be reversed and the actual outstanding debt restored?

 Solution:

1. In the Sale form or on the Outgoing Invoice tab in the Trading with Invoice Issuance (TII) mode, find the relevant document and select «Cancel Payment» («Delete Payments»).

2. If the transaction was recorded on a previous day and the cash register day has been closed, the system will not allow the document to be deleted until the relevant cash register days are temporarily reopened in the Cash Register Totals form.

What Happens to an Advance Payment if an Unpaid or Partially Paid Sale Is Deleted?

 Question: a customer made an advance payment for an order or invoice but later decided not to proceed with the purchase. The order was canceled, and the goods invoice was deleted. What happens to the money?

 Solution: when an inventory document is deleted, the financial document recording the advance payment is not automatically deleted. The amount remains recorded as a prepayment for that business partner. The business then has two options:

1. Apply the funds to a new purchase using «Pay Outgoing Invoice Using Prepayment» in TII mode.

2. Refund the customer by creating a cash disbursement order or a bank payment to return the advance.

Why Does a Debt Appear After Changing the Exchange Rate or Price on an Invoice for Shipped Goods?

 Question: an invoice denominated in foreign currency was paid in hryvnias at the equivalent exchange rate. After the payment, the exchange rate or selling price in the invoice was changed, and a small outstanding balance of a few kopecks or hryvnias appeared in the settlement records. Why does this happen?

 Solution: in Torgsoft, outstanding debt is calculated in the document currency as the difference between the value of goods and the amount of recorded payments converted at the exchange rate applicable when the payment was made. If the price or exchange rate is changed retroactively in the inventory document, the invoice total changes, but the financial document retains the original payment amount. To resolve the discrepancy, update the amount in the financial document or record an adjusting refund or additional payment.

How Can Documents Be Corrected if the Accounting Period or Cash Register Day Is Already Closed?

 Question: an invoice error was discovered a month later, when the accounting period had already been closed and editing was blocked.

 Solution:

1. In Analysis — Period, unlock the required month (or reopen the relevant cash register day in the Cash Register Totals form).

2. Cancel the payments and make the necessary corrections to the inventory document.

3. Be sure to recalculate the cash register days to restore accurate cash balances, then close the period again.

4. Step-by-Step Procedure for Checking Financial Documents and Resolving Discrepancies

To quickly identify discrepancies between goods shipped and payments actually received, follow this structured diagnostic procedure: