Invoice Validation/Invoice Cancellation Accounting Query

Hi,

I have a query with regard to the accounting entries (for service tax )generated to the event of an invoice validation and the cancellation of the same invoice in the subsequent month.

1. We have an invoice in the month of APR-16 with normal service tax. Below is the entry created at the time of invoice validation in APR-16.

               Interim Recovery Account........Debit

                         To Supplier Liability(charge Account)

    2. Once Service Tax Processing Program is run, the below entries are created in GL:

               Recovery Account......Debit

                         To Interim Recovery Account.

    3. Now the invoice is cancelled in the next month, that is MAY-16: