Reconcile a month with corrections in it — transcript

Play this as a presentation — one slide per step, with the same narration. Every word of every step is on this page.

This lesson is for you if you run the books at GadgetSphere and it is the 6th of a month in which things went wrong and were put right: an e-invoice cancelled and re-issued, a credit note raised against one that could not be cancelled, a sale voided after its e-invoice had gone out. The four-screen check from the previous course still closes the month. In about ten minutes you will learn the extra questions a month with corrections in it has to answer, and where each answer is.

Step 1 — Read the cancelled amounts on the Discrepancies Report

After this step you know how much of last month’s reporting was cancelled, per company and per document type. Go to Monthly Report, then Discrepancies Report, and create the report for last month, once for each of GadgetSphere’s three companies. Open the IRB Audit Summary tab. It shows the e-invoice side per document type, split three ways: Internal Submission, which is what you sent; From E-commerce, self-billed; and From Supplier, Matched, which reads zero unless suppliers deliver over PEPPOL or e-mail. Beside every document type there is a Cancelled amount. For a clean month that column is zero all the way down. For the month you are closing it is not, and every figure in it is a question: which e-invoices were these, and what replaced or credited them? The next step finds them on the live status screen. If support has enabled the scheduler, last month’s report also arrives by e-mail.

Reference: My E-Invoice Admin Applet — 8. Monthly Report → Discrepancies Report

Step 2 — Explain every Cancelled row with the document that replaced it

After this step every Cancelled e-invoice from last month has a partner you can name. Go to Internal Submission, then To IRB E-Invoice, filter to last month, and sort on the status column; this is the live screen, and Submission History would not show you the cancellations. A Cancelled row is a validated e-invoice that the Inland Revenue Board, LHDN, later cancelled at your request, and on its own it is a sale that is no longer reported. For GadgetSphere’s laptop order that is the corrected RM 9,920 invoice, which went back as a fresh e-invoice and now reads Valid. A Cancelled row with no Valid partner means the sales document is still open for editing, or was voided outright, and someone needs to say which. Write the pairs down as you go. The rule for this screen is that every Cancelled row has an answer: the document that replaced it, or the sale that no longer exists.

Reference: Validation and clearance — How it behaves in BigLedger

Step 3 — Confirm every credit note reached Valid and points at a live original

After this step the corrections made past the window are complete, not merely raised. A credit note is an e-invoice with its own row, so it is on the same filtered list. Each one should read Valid, not Submitted, which only means LHDN is still deciding. An Invalid credit note is the one correction that fails quietly, because the original it corrects still reads Valid and nothing on its row hints that the credit note was rejected. The codes to expect are DR303, the referenced e-invoice is not in a referenceable state, which usually means the original was resubmitted under a new identifier; and DR308, the buyer does not match, most often a named customer on a credit note against a consolidated e-invoice, where the buyer is General Public. Point it at the currently valid e-invoice, or clear the reference, and Save and Resubmit. Then check the pair: both Valid, and the two together netting to the corrected figure.

Reference: E-Invoice Validation Rules & Troubleshooting — 3. Credit or debit note references an original that is no longer valid

Step 4 — Account for a sale voided after its e-invoice went out

After this step you can explain a gap the Discrepancies Report shows in the direction nobody expects. The report’s ERP side, which is your own documents rather than LHDN’s, counts finalised documents only. A sale that was voided after its e-invoice had reached LHDN drops off that side, while its e-invoice stays on the LHDN side, still Valid, with no sale behind it. The two summaries disagree by exactly that amount, and they keep disagreeing until the e-invoice is cancelled, inside 72 hours, or credited after. So a void is never the end of the job; treat it as a cancellation job, and you know both routes. The mirror image is a sale you abandoned without marking it Skip E-Invoice: it is still finalised, it has no e-invoice, and the report counts it as missing. Mark abandoned sales skipped before the run, and never void a submitted sale without opening this course’s second or third lesson.

Reference: The Month-End E-Invoice Cycle (1st to 7th) — Step 7: Reconcile, and understand the five reasons a tally does not balance

Step 5 — Keep e-invoice corrections out of the ledger unless your accountant says otherwise

After this step you know what this month’s corrections did to the books, usually nothing. The e-invoice applet never posts to the general ledger. Cancelling an e-invoice writes nothing to any account, and matching a supplier document posts nothing and touches no tax. Two exceptions, both chosen by you at approval: void original document voids the sales document behind it, and new reversal document creates a reversing sales document, which posts like any other. That is why the Discrepancies Report compares documents against e-invoice records, never ledger balances, and why a clean report says nothing about the books. The one correction that does change your reported figures is the credit note, which is why the accountant was in the loop before it was raised. So the month-end question is whether the credit note’s effect on the books was intended. If the sale was already corrected in the books, it was not, and the accountant will have said so.

Reference: My E-Invoice Admin Applet — 9. What this applet writes

Step 6 — Check the purchase side

After this step the supplier side of the month is closed too, in thirty seconds, if you did the fifteen minutes earlier in the month. Go to Reconciliation (Purchase), then PD Matching Q. It should hold only the purchases you have not yet reviewed; everything you checked against the supplier’s validated e-invoice has been pushed to Unmatched PD Hist., and the few electronic ones are in Matched History. Every supplier you expected to see is on the list, and any that is missing turned out to be missing a tax number rather than missing an e-invoice. For every purchase above your own review threshold, the supplier’s document with its LHDN identifier and QR code is filed with the purchase. And the From Supplier, Matched, column on the report reads zero, which you are not going to chase. That is the purchase-side close for a retailer whose 1,200 suppliers mostly send PDFs.

Reference: Incoming Supplier E-Invoices — What success looks like

Step 7 — Export on the 7th and keep the file

After this step you hold a record of what was true when the month closed, which the screen will not show later. The CSV export from To IRB E-Invoice reads each record as it is now. An e-invoice cancelled in October reads Cancelled on a file pulled in November, and a clean 7th looks different by the time an auditor asks. So filter to last month, use the Export tab, wait for the row to show Done, download, and keep the file; one export at a time per kind; a second request while one is building is refused. For a month with corrections the file earns its keep twice: it carries the LHDN unique reference number of every e-invoice, and for credit and debit notes it carries the reference to the original, so the third step’s pairs are in the file in LHDN’s own identifiers. The cancelled-and-replaced pairs from the second step are not, so write those down.

Reference: E-Invoice Submission Mechanics — Export files: the month in a file

How the steps fit together

    flowchart TD
  s1["Step 1 — Read the cancelled amounts on the Discrepancies Report"]
  s2["Step 2 — Explain every Cancelled row with the document that replaced it"]
  s3["Step 3 — Confirm every credit note reached Valid and points at a live original"]
  s4["Step 4 — Account for a sale voided after its e-invoice went out"]
  s5["Step 5 — Keep e-invoice corrections out of the ledger unless your accountant says otherwise"]
  s6["Step 6 — Check the purchase side"]
  s7["Step 7 — Export on the 7th and keep the file"]
  s1 --> s2
  s2 --> s3
  s3 --> s4
  s4 --> s5
  s5 --> s6
  s6 --> s7
  

Check yourself

Three to five questions on what you just heard. Every correct answer links to the page that makes it correct, so you can check the source, not just the mark.

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