In NetSuite, “record is closed” and “void” are terms used to describe different actions and states of financial transactions or records. Here’s a breakdown of the differences between the two:
Closed
- Definition: Closing a record indicates that the transaction has been completed and no further changes are expected.
- Use Case: Commonly used for transactions like sales orders, purchase orders, and work orders.
- Impact on Financials: Closing a transaction does not remove it from financial records but ensures that it cannot be edited further. The transaction is still part of the financial reporting and history.
- Process: For example, closing a purchase order means all items have been received or the order is no longer active, but the financial data remains intact.
Void
- Definition: Voiding a record means that the transaction is cancelled and effectively rendered as if it never happened.
- Use Case: Typically used for transactions such as checks, invoices, and bills.
- Impact on Financials: Voiding a transaction reverses its financial impact. For instance, voiding a check will remove the associated debit from the bank account and credit the expense account it was initially charged to.
- Process: When a transaction is voided, it updates the accounting books to reflect that the transaction has been nullified. This action is usually irreversible and the transaction is marked as void in the system.
Key Differences
- Finality: Closing a record signifies completion while voiding a record nullifies it.
- Financial Impact: Closed records still impact financial reports; voided records do not.
- Editability: Closed transactions cannot be edited but remain part of historical data. Voided transactions are canceled and their financial effects are reversed.
Sales Orders
- Closing Sales Orders: Sales orders can be closed when they are no longer needed, and this prevents further actions like billing or fulfilling the order.
- Voiding Sales Orders: Sales orders themselves are not typically “voided” directly. Instead, if a sales order needs to be cancelled, it is usually marked as closed or deleted if no downstream transactions (like fulfilment or billing) have been created from it.
Invoices
- Voiding Invoices: Invoices can indeed be voided. When an invoice is voided, it reverses the accounting impact. This is commonly done when an error is found after the invoice has been issued.
- Impact on Financials: Voiding an invoice will remove its financial impact, reversing the revenue recorded and any accounts receivable entries.
- Process: To void an invoice, you typically go to the invoice record and select the void option. This action creates a corresponding reversal entry in the financial system.
Summary
- Sales Orders: Typically closed or deleted (if no related transactions exist) rather than voided.
- Invoices: can be voided, which reverses the accounting impact and effectively cancels the invoice.
It’s essential to follow the appropriate procedures in NetSuite for handling sales orders and invoices to ensure accurate financial reporting and audit trails.