Fixing invoices.
WHAT A CREDIT NOTE IS
A document reducing or cancelling an invoice.
WHEN TO ISSUE ONE
The invoice was wrong Goods were returned Work was not completed A discount was agreed after invoicing
WHY NOT JUST DELETE OR EDIT
Invoice records must be traceable.
Deleting or altering a sent invoice breaks your records and looks like concealment.
HOW IT WORKS
The original invoice stands. The credit note reduces what is owed.
WHAT IT MUST CONTAIN
Its own number Reference to the original invoice What is being credited and why The amount
WHAT TO DO IF THE INVOICE WAS SIMPLY WRONG
Credit it in full and issue a corrected invoice with a new number.
WHAT TO RECORD
Both documents, linked.
WHAT YOUR ACCOUNTANT NEEDS
The full trail: invoice, credit note, corrected invoice, payment.
