Question

You have already created and mailed an invoice for a customer, when they call to cancel the order. What should you do?

Answer 1

In the event of a customer cancelling an order after an invoice has been sent, it is necessary to issue a cancellation or a credit memo, confirm with the customer, and adjust the accounting records accordingly.

Step-by-step explanation:

When a customer calls to cancel an order after you have already created and mailed an invoice, the appropriate action is to issue a cancellation or a credit memo. Firstly, verify if the product or service has already been delivered or if it can still be stopped. Next, if necessary, create a credit memo that can serve as a documentation of the cancelled invoice and applies a credit to the customer's account. Communicate with the customer to confirm the cancellation and ensure they are informed about the reversal. Additionally, update your accounting records to reflect this change. Depending on the situation, you may also want to discuss the company's return policy or attempt to solve any issues that led to the cancellation.

Steps to Process a Cancellation After Invoicing

1. Verify the delivery status of the product or service.
2. Issue a credit memo or cancellation notice to the customer.
3. Communicate with the customer regarding the cancellation.
4. Update the accounting records to reflect the cancelled invoice.