What happens when you void and regenerate an invoice in RevRec?

Problem statement

When an invoice is voided in Chargebee Billing, RevRec reverses the revenue impact associated with that invoice when the invoice was previously synced to RevRec. The reversal is posted in the original revenue period if that period is still open; if the original period is closed, the reversal is posted in the current open accounting period.

Voiding an invoice may also create a credit note with a reason such as Invoice Void. For how RevRec treats that scenario, see what happens when you void an invoice and create a credit note in RevRec.

If the invoice was never synced to RevRec before it was voided, RevRec marks the invoice as VOIDED and does not reverse revenue.

If the invoice is later regenerated, RevRec treats the regenerated invoice as a new billing event. Revenue is recognized based on the service period, transaction date, and the revenue recognition rules configured for the product or charge. Depending on the timing of the regenerated invoice and the service period, RevRec may recognize catch-up revenue for prior service periods that have already elapsed.

Catch-up revenue is recognized in the period when the regenerated invoice is synced or processed, not spread back into prior closed periods unless your organization has prior-period adjustments explicitly enabled.

Related scenarios

• What happens to revenue recognition when an invoice is voided?
• How is revenue recognized when a voided invoice is regenerated?
• Does voiding an invoice reverse revenue in RevRec?
• Is catch-up revenue recognized when the invoice is regenerated?
• Will a regenerated invoice recognize catch-up revenue after a void transaction?

Solution

RevRec applies different rules when an invoice is voided, when it is regenerated, and when the original invoice was never synced. The sections below describe the expected behavior, an example timeline, and checks to run after void and regenerate events.

1. When an invoice is voided

When an invoice is voided in Chargebee:

• If the invoice was never synced to RevRec before void, RevRec marks it VOIDED and does not reverse revenue.
• If the invoice was synced, RevRec reverses the previously invoiced amount.
• Any revenue already recognized for that invoice is reversed.
• If the original revenue period is still open, the reversal is posted in that same period. If prior periods are closed, the reversal is posted in the current open period.
• Future revenue recognition for that invoice stops.

This may result in a negative revenue value for the invoice in RevRec, because the system is reversing revenue that was previously recognized.

2. Revenue reversal and accounting period treatment

The reversal depends on the period status:

• If the original revenue period is open: RevRec reverses the revenue in that same open period.
• If the original revenue period is closed: RevRec posts the reversal in the current open period.
• If periods are reopened and reprocessed: The revenue impact may shift back to the original service period depending on the configuration and accounting treatment.

When the invoice was synced before void, RevRec also adjusts the deferred revenue balance related to the invoice as part of the reversal.

3. When the voided invoice is regenerated

When the invoice is regenerated:

• The regenerated invoice is treated as a new invoice or billing event.
• RevRec evaluates the invoice based on the configured revenue recognition rules.
• Revenue is recognized according to the applicable service period.
• If part of the service period has already passed, RevRec may recognize catch-up revenue in the period when the regenerated invoice is synced or processed.
• The catch-up revenue may offset the earlier reversal caused by the voided invoice.
• The final revenue impact depends on whether the regenerated invoice matches the original invoice amount, service period, and recognition setup.

If void and regenerate happen in the same open period, you may see both the reversal and the catch-up in that single period. If they happen in different periods, you'll see a reduction when voided and an increase when regenerated.

For example, if the regenerated invoice covers a service period that started in a prior month, RevRec may recognize revenue for the elapsed portion of the service period in the current open period, depending on the configuration and period status.

4. Does voiding reverse revenue in RevRec?

Yes, when the invoice was synced to RevRec before void, voiding reverses the recognized revenue for that invoice.

If the original revenue period is still open, the reversal is posted in that period. If prior accounting periods are already closed, RevRec does not reopen or alter those closed periods automatically. Instead, the reversal is posted in the current open period.

If the invoice was never synced before void, RevRec does not reverse revenue.

5. Is catch-up revenue recognized on regeneration?

Yes, catch-up revenue may be recognized when the invoice is regenerated.

Catch-up revenue is recognized when the regenerated invoice has a service period that includes time already elapsed. RevRec calculates the revenue that should have been recognized up to the current period and posts the applicable amount in the period when the regenerated invoice is synced or processed, based on the recognition rules.

The exact amount depends on:

• The invoice service period
• The invoice date
• Revenue recognition rule configuration
• Whether prior periods are open or closed
• The product or charge-level revenue treatment

Example

Assume an invoice is generated for a service period from January 1 to March 31.

Original invoice

• Invoice is generated in January.
• RevRec starts recognizing revenue over the service period.
• Revenue is recognized for January and February.

Invoice is voided in March

• The invoice is voided in Chargebee.
• RevRec reverses the revenue already recognized for that invoice.
• If the January and February accounting periods are still open, the reversal is posted in those periods. If those periods are closed, the reversal is posted in the current open period (March).
• Future revenue recognition for that invoice stops.

Invoice is regenerated in March

• A new invoice is generated for the same or corrected service period.
• RevRec evaluates the regenerated invoice using the applicable revenue rule.
• If the service period started in January, RevRec may recognize catch-up revenue for January and February in the current open period when the regenerated invoice is synced, depending on the configuration and period status.
• Revenue for the remaining service period continues to be recognized as per the configured schedule.

Recommended checks

After voiding and regenerating an invoice, review the following in RevRec:

1. Confirm the original invoice shows the reversal correctly.
2. Confirm the regenerated invoice is available in RevRec.
3. Check whether catch-up revenue was posted.
4. Review the revenue waterfall for the affected customer or subscription.
5. Validate the current open period revenue impact.
6. Confirm that closed periods were not unexpectedly impacted.

Important notes

• Voiding an invoice impacts RevRec reporting when the invoice was synced, because the previously recognized revenue is reversed.
• If the invoice was never synced before void, RevRec marks it VOIDED and does not reverse revenue.
• Reversal timing depends on period status: if the original revenue period is open, the reversal is posted there; if prior periods are closed, the reversal is posted in the current open period.
• Catch-up revenue from a regenerated invoice is posted in the period when the regenerated invoice is synced or processed, not spread back into prior closed periods unless prior-period adjustments are explicitly enabled.
• Closed accounting periods are generally not changed unless they are reopened and reprocessed.
• Regenerated invoices are evaluated based on their own invoice details and revenue rules.
• Regenerated invoices can create catch-up revenue if their service period includes dates that should already have been recognized.
• Catch-up revenue depends on the service period and recognition configuration.
• Ensure that the regenerated invoice has the correct service period and recognition rules to avoid unexpected revenue adjustments.
• If the invoice was deleted instead of voided, the behavior may differ. Deleting an invoice may not impact TCV or revenue recognition in the same way and can cause downstream issues if the transaction still exists in RevRec.
• Always validate the revenue waterfall or revenue reports after voiding and regenerating invoices.