Regulate Break Invoice For Free

If an incorrect invoice has been sent, the business must issue a cancellation invoice with its own, new invoice number. This will include a negative invoice amount, as well as the original invoice number and the date it was issued. Then, a correct invoice can be raised with a different invoice number.

How do you correct an incorrect invoice? Call your customer. You cannot simply correct an error on your invoice. This is because it is now an official document that you can only correct with an official credit or debit note. ... Send a credit note or debit note. Credit note. Was the amount on your invoice too high?

If a business makes a mistake on an invoice they have already sent to their customer, they must cancel the invoice with a credit note and then issue a new invoice. The credit note essentially 'pays' the incorrect invoice so there is no outstanding payment.

If your customer comes back to your business with the incorrect invoice, you can correct the error by hand with a note directly on the original invoice. However, you must be sure to sign, date and stamp (if you have a company stamp) the invoice.

How to assign an invoice number Use unique numbers. Make each invoice number unique to avoid confusion. ... Assign numbers sequentially. ... Designate invoice numbers chronologically. ... Consider using project codes. ... Use accounting software. ... Follow any regulatory guidelines. ... Double check your invoice numbers. ... Maintain your invoices.

The bottom line. While amended invoices are legal in most cases, it's still best practice to avoid issuing incorrect invoices to begin with.

Generally, it is legal to amend an invoice that is missing information or includes an error. However, you should never delete an invoice if this happens. It is important for auditing reasons that you hold onto records, even if they are incomplete or incorrect.