How to reissue an invoice

There’s nothing worse than sending an invoice to your customer and later noticing it has a mistake on it. Perhaps it’s only a typo, but perhaps it’s something more important, maybe an incorrect amount or even a missing item. In these cases, you then need to know what to do.

How to reissue an invoice

This post summarises how to correct an invoice you’ve already sent to your customer and what you need to do to make sure your accounts still add up.

Use a credit note to cancel an invoice

The most common way to fix a mistake is to cancel an invoice with a credit note. Credit notes are legal documents that are used to ‘pay’ an invoice that needs to be cancelled and balance your books. It stops an incorrect invoice from being ‘overdue’. Suppose that you’ve issued your invoice, but your customer contacts you to say something needs is wrong. Perhaps for example, you’ve forgotten to add a discount you had previously agreed upon, you have added an item twice, or the customer’s details are incorrect. In these cases, you then need to issue a credit note.

Simply open the incorrect invoice and tap ‘⋮’ > ‘Create’ > ‘Credit Note’. The information on the incorrect invoice will be automatically transferred to the credit note you’re drafting, and the credit note will be assigned its own credit note number.

When you’re ready, just tap ‘Complete’. This will mark the incorrect invoice as ‘paid’ and you can send the credit note to your customer. This will let them know the invoice is cancelled and they shouldn’t pay you.

You can then go back to your invoices tab and open your list of credit notes. The credit note will then be marked as ‘matched’. By following this procedure, your accounts will be balanced, and you won’t have any overdue payments.

Can I delete an invoice?

Answered simply, no. You should never delete an invoice, even if it is mistaken. It’s a legal document that you’ve sent to your customer. You therefore need to assure them that the invoice has been cancelled and they are not indebted to you by issuing them a credit note.

Editing an invoice that has been sent

Occasionally, it may be possible to edit an invoice that has already been sent, although this is not common practice. Suppose for example, you’ve made a small error such as an embarrassing spelling mistake or a typo in your contact details. What you would need to do is open the sent invoice and click ‘⋮’ > ‘Edit’. You can then make your correction and when you’re done, click ‘Save’.

You have to remember though; you have already sent this invoice to your customer via the Debitoor system. What does this mean? It means your customer has received an email from you with a link for them to view your invoice and a PDF attachment.

Therefore, if you make a change to the invoice, the link will direct your customer to the updated version of the invoice. However, the PDF attachment will not have changed. Therefore, it’s necessary that you explain what you have done so that both you and your customer are on the same page.

Never make changes to the prices on an invoice you have already sent. The amended invoice will still have the same invoice number and will confuse your customer. In this case, you must create a credit note instead and start again.

Correcting mistakes on a paid invoice

If you’re unfortunate, you may find that not only has your invoice been sent with a mistake on it, but the customer has also already paid the amount due. Depending on the severity of the mistake, there are different things that you can do.

Perhaps at this point, it’s necessary to consider whether a simple typo needs fixing. Maybe not. However, if you have made a mistake in your pricing, you’ll need to fix this by issuing your customer a refund. A credit note should therefore be completed by opening the ‘paid’ invoice and clicking ‘⋮’ > ‘Create’ > ‘Credit Note’. Once done, a new invoice with the correct amount should be sent.

Depending on the situation, it may be possible to issue a partial credit note, for example, if you’ve added the same item twice. In that case, you can create a credit note for just that item and then give a refund.

In the system, open the original invoice and create a credit note. The credit note will then be marked as ‘paid’ and the incorrect invoice will be marked as ‘partially paid’. Then, simply reopen the invoice and click ‘Add payment’. The amount will be shown in red (to show it’s money out) and will be the same amount as the credit note you created. Just click ‘Save’, and the invoice will once again me marked as fully paid, showing all of your accounts add up!

At other times, a full credit note and refund may be easier to handle. If there is a discount you have forgotten to apply, if there are multiple mistakes, or if your customer requires a new invoice, you should cancel the entire invoice, give a refund, and begin again.

Correcting mistakes on an invoice – a summary

Mistakes are frustrating, but they’re also pretty common. You need to deal with them carefully and follow the correct procedure to ensure you do not complicate your accounts or confuse your customer.

Most importantly, you need to remember:

  • Any changes you need to make to prices, discounts or VAT require that you first cancel the sent invoice with a credit note, and then create a new one.
  • Any changes you make to an invoice need to be clearly communicated to your customer. If you are unsure, cancel the sent invoice with a credit note, and then issue them with a new one.
  • Never delete an invoice. If you have sent an invoice to a customer or reported it to the tax authorities, it may be unlawful to remove it from your accounts.

If you issue a faulty invoice, it is your job to correct it. This is not just in the interest of the customer, who wants a correct invoice but also the tax office or Internal Revenue System (IRS), who will need to have correct documentation when investigating your tax returns. But what exactly does correcting or canceling an invoice entail? In this article, we will explain what these terms mean and what you should keep in mind when using a correction invoice template.

  1. Who is allowed to issue correction invoices or cancellation invoices?
  2. How long is a correction invoice valid?
  3. Writing an correction invoice is easy!
    1. Required information for an invoice
    2. Correction invoice: when your original invoice has not yet been recorded or dispatched.
    3. Cancellation invoice: when your invoice has been recorded and dispatched
    4. Sample templates: correction and cancellation invoices

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Who is allowed to issue correction invoices or cancellation invoices?

Only the service provider, company or merchant who issued the invoice may provide corrections or cancellations to an invoice. A correction by the recipient of goods or services is not permitted and will not be accepted by the tax office.

How long is a correction invoice valid?

In the case of a tax audit, or special sales tax audit, invoices and receipts are the focus of the investigation. Considering how many invoices and receipts a business can accumulate, it is a great achievement for a company to do this with no errors. The reality is that companies often do make mistakes: as a rule, there are some small and occasionally some large errors. The IRS or other investigating authority may ask you enter your tax deductions from the beginning as a result.

A statute called the Administrative Remedies for False Claims (31 USC Chapter 38. §§ 3801 – 3812) covers situations where a claim has been made in error. This statute allows for administrative recoveries by federal agencies. If a person submits a claim that the person knows is false or contains false information, or omits material information, then the agency receiving the claim may impose a penalty of up to $5,000 for each claim. The agency may also recover twice the amount of the claim.

Check your incoming invoices as thoroughly as possible. It would be annoying if atax deduction was denied to you because of an avoidable mistake. Reliable accounting programs help you keep track.

Writing an correction invoice is easy!

Has a customer of yours returned goods to you? Have you noticed an incorrect amount in your invoice, or forgotten to include any other crucial information in it? All you need to do to rectify the situation is write a corrected invoice to your customer! To do this, you need to know what information is crucial when making an invoice.

Required information for an invoice

There is no national legal standard in the USA that states what contents an invoice issued within the US to another customer within the US must include. However, accounting best practice standards dictate that the following information should be present on any invoice issued by a merchant:

✓ The full name and address of both the merchant and the customer.

✓ The business Employer Identification Number (EIN), or if you run a sole proprietorship or LLC, your own Social Security Number.

✓ The customer’s Social Security Number (if provided).

✓ The issue date of the invoice.

✓ The amount due to be paid.

✓ The deadline date for paying the amount due.

✓ The correct invoice number for the invoice.

Accurate description of goods or services provided.

✓ You may be required to include sales tax in your invoice, depending on your state sales tax regulations.

✓ Any pre-arranged discounts applicable.

If one of these details is missing or incorrect, you should issue an invoice correction. If not, you run the risk of having inadequate records when it comes to filing tax returns and may risk not being able to claim back on your sales tax expenses.

There are two things you need to remember when dealing with an invoice correction. Firstly, you must issue the missing or correct information by means of a corrected invoice with a new invoice number. Secondly, your corrected invoice must clearly refer to the previous invoice it is replacing. Do not worry too much about spelling mistakes or typos – generally, if the meaning of your bill is clear, you do not need to make any corrections.

Correction invoice: when your original invoice has not yet been recorded or dispatched.

If the incorrect invoice has not yet been dispatched to the customer or processed by your accounting department, then there is no need to create a correction invoice. All you need to do is start the first invoice again from scratch under the same invoice number and send it to the customer. After all, they have not yet seen the mistake so they need never know it was made in the first place.

However, if the customer has already received the bill, you should issue the corrected one as quickly as possible. It is also best practice to inform the customer that you are issuing them a correction invoice. If the bill has not yet been paid and has not been debited, then you can use a billing correction to correct your mistake. This is a document that corrects the missing or incorrect information and is sent to the customer before they have paid the bill. When issuing a billing correction, you must make sure that the document clearly correlates to the previously issued invoice. To do this, be sure to include the following information:

Name and Address of the company providing the service

Correction of the previous error

✓ Reference to the invoice number and date of origin.

How to reissue an invoice

If a client contacts me with an issue about an invoice I would like to be able to correct and reissue the invoice with whatever additions, deletions, corrections are necessary. I can’t find any means of undoing an invoice and starting over. Is there a way to do this?

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11 comments

You should be able to accomplish what you need by editing the individual work items which comprise the invoice. Items not desired in the revised Invoice can have their checkbox cleared in the Invoice Editing scene, or new work items can be added to the project and included in the invoice by choosing their checkbox in the Invoice Edit scene.

To maintain revision control, I add an alpha suffix to the original invoice number and include a revision date for the newly issued invoice.

How to reissue an invoice

What I usually do, and I may be wrong, is simply delete the invoice and generate the corrected one, because deleting an invoice does not delete the data in the invoice, just the display of that data. I think of an invoice as a report. I can just run a new report.

How to reissue an invoice

Hmmm – I guess I was a little hasty with the wording of this query. Thanks Rob & Tom, those responses do work. I guess what I should have asked is: “Is the only way to invoice for work that occurred before the last invoice date to reissue the invoice? E.g. a subsequent invoice will not pick up any work items before the date of the previous invoice even if those items are listed as “unbilled?”

How to reissue an invoice

“a subsequent invoice will not pick up any work items before the date of the previous invoice even if those items are listed as “unbilled?””

I don’t believe that’s true, in fact i know it’s not, if I understand you correctly. In my case, I uncheck the time entries on the edit invoice window that I don’t want to appear on the invoice, and they those uncheck (unbilled) items will appear on my next invoice, which again I have the choice to bill them or not.

What’s “right” is what fits your workflow. My SM is set up to increment to the next invoice number automatically when an invoice is generated. If I delete an invoice, then that deleted invoice number is “used up” and leaves a gap in the invoice number sequence (which offends my sense of order).

(As Tom has said while I’m typing slowly) With regard to Brian’s comment, What gets included in a new invoice is whichever work items have been chosen by checking their checkbox in the invoice generator. It shouldn’t care that there are items invoiced from later dates.

How to reissue an invoice

I tried adding some billable items in the “work” window that should have gone on the last invoice. They appeared in the “work” window as unbilled items. However, when I tried to generate a new invoice those old items were not included; the new invoice would only go back as far as the day after the last invoice was generated. What I finally wound up doing was marking the entries in question as “unbillable” in the “work” window and then adding them as an additional expense item in the “invoice generation” window. Since the items wound up being dated the day of the invoice I had include an explanation in the work description to indicate what the items were for.

How to reissue an invoice

Brian, we must be doing in differently because I am able to bill for any time or expense incurred against the job, since the job was created, as long as they haven’t been billed before, regardless of how many invoices I have issued.

As Tom has said, there must be something different in how your Studiometry is configured. I can go back over a year and create a new work item and invoice it regardless of whether there have been intervening work items and invoices.

What is the setting of Item Mode in your Edit Debt/Credit scene for an item you can’t invoice? By default, mine are Billable

How to reissue an invoice

Well it didn’t work that way for me. My items are defaulted to “Billable” too. Maybe the 8.2 upgrade fixed whatever was out of whack.

I suspect the issue is other than revision 8.2. I’ve been a SM user since 6.x and haven’t encountered this kind of behavior. For the record, my SM runs under Windows on 2 networked workstations.

When you go back and edit the old invoice, do the new work items appear at all in the “Invoiced Items” list? You would need to manually check the new items in that list to add them to the old invoice, as the invoice will always save its specific list of items and not automatically add new items.

Printable Word and Excel Templates

How to reissue an invoice

Invoice Request Letters & Emails

An invoice is a documentation receipt generated during a business transaction. A seller issues this invoice to their customer. The invoice lists the products, quantity of product and the prices at which the products are being sold. Invoices for services indicate the type of work assigned, the number of hours worked and the number of days spent. If an employee worked extra hours or on holidays the information is also mentioned separately.

How to request an invoice from supplier/Vendor?

A written letter or an email is sent to the supplier/vendor, requesting for invoice. The letter consists of a request for an invoice for the amount of the number of products or services and the agreed prices for the products or services. This helps customers record the amount of payment they have to make to the supplier.

Request letter for original invoice

Letter of request for the original invoice is basically requesting for the original document issued by the vendor or service provider during the business transaction. For example, point of sale (POS) receipt or an online order confirmation are original invoices. For example

How to reissue an invoiceDear Mr. XYZ,

This is a request for the issuing of the original invoice of our business transaction made on ‘Date’. The transaction was made for ‘details of the products/services’. Order reference number of our transaction is ‘xxx-xxx-xxx’.

Please forward us the original invoice.

Invoice letter for payment

Payment invoice letter is issued by the seller to their customer to indicate what product or service the customer has bought, the quantity, the prices and other details such as time of order and time of delivery. Some businesses provide a specific amount of time for the payment. This time period is mentioned in the original invoice. Moreover, some businesses also provide discounts on fast payments. For example, payments made within 15 days may be given 10% discount, or payment made within 30 days may get a 5% discount. For example

How to reissue an invoiceDear Mr. XYZ,

This letter is being sent to issue the invoice letter for payment. Our transaction was made on ‘Date’, regarding the ‘details of product/service’.

You will find the invoice attached to this letter. Please make sure to confirm the details on the invoice with the details of the transaction. If you have any queries, contact me on my number, ‘Phone number’.

Request an invoice via email

To request for an invoice, the concerned personnel issue an email consisting of details of the products or services bought. The name, price, and quality, as well as the time order, need to be included in the email. The order number is also included as a reference. These details make it easy for the supplier/vendor to recognize the order the invoice is being requested for. For example

How to reissue an invoiceDear Mr. XYZ,

This email is being sent to request a digital invoice for our agreed transaction on the ‘date’, regarding the ‘name and details of the product’/service’. The reference number of the transaction is ‘xxx-xxx-xxx’.

Please send us a digital invoice of our transaction.

Request letter for a tax invoice

Request for tax invoice is usually made between dealers who sell goods to each other. The tax invoice contains the details of the products or services sold such as quantity, the rate per unit and the total goods value. The letter used to request for such details among the dealers to record the business transaction. The date the deal was made on and the order confirmation date should also be included in the letter so relevant invoice can be issued to the concerned personnel. For example

How to reissue an invoiceDear Mr. XZY,

This letter is being issued to request for the tax invoice concerning our business transaction made on ‘Date’. The agreement made was regarding ‘details of product/services’. The reference number is as follows, ‘xxx-xxx-xxx’.

We request you to please send us the tax invoice for our transaction.

What is e-invoicing?

e-invoicing refers as per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN)

Notified persons: A registered person, other than an SEZ unit*, Insurance Company, banking company, financial institution including non-banking financial institution, GTA, supplier of passenger transportation service, supplier of services by way of admission to exhibition of cinematograph films in multiplex screens, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds INR 500 crores [100 crores w.e.f. 01.01.2021] would be required to prepare invoice and other documents prescribed under sub-rule (4) of rule 48 in respect of the supply of goods or services or both to a registered person or for Exports.

FAQS on e-invoicing

Where turnover was exceeded 500 crs in previous FY from 17-18 then e-invoicing would be applicable from 01.10.2020.

In case of 100 crs was exceeding in any previous FY from 17-18 then e-invoicing from 01.01.2021.

However, if the connected e-way bill is active or verified by officer during transit, cancellation of IRN will not be permitted.

Do not report the Invoice in your GST Returns i.e., Manually delete in GSTR-1.

One could enter such details in field “other charges (Invoice Level)”.

Back dated invoices may not be permitted.

Invoice without QR code along with IRN embedded would be invalid under GST.

One can search the status of enablement of a GSTIN on e-invoice Portal.

The status of enablement of GSTIN is based on GSTR-3B reported turnover.

However, it has to be noted that enablement status on e-invoice portal doesn’t mean that the taxpayer is supposed to do e-invoicing. Taxpayers need to check applicability on actual turnover.

As there could be instances that turnover was excess reported in returns etc.in such case actual needs to be seen rather than GSTR-3B reported data.

This listing of GSTINs is solely based on the turnover of GSTR-3B as reported to GST System. It may contain exempt entities or those for whom e-invoicing is not applicable for some other reason. So, it may be noted that enablement status on e-invoice portal doesn’t mean that the taxpayer is supposed to do e-invoicing. If e-invoicing is not applicable to a taxpayer, they need not be concerned about the enablement status and may ignore it.

Illustration for e-invoicing applicability in the year

Applicability of E-invoicing threshold 500 crores till 31.12.2020 thereafter 100 crores

Scenario – 1

# As in previous FY 2020-21 turnover was more than 100 crs

Special mention to CA Ashok for his valuable suggestions.

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Sample Letter Requesting Invoice from supplier to make payments. Request for invoice by email to make timely payments. How to request invoice from vendor for making payments? Request letter for original invoice from the contractor

Sample Letter to Suppliers Requesting Invoices

The Manger Sales & Marketing
ABC Company
Lahore.

Subject: Invoice for the month of August (Date)

With reference to our purchases for the month of Aug (Date) from you, it is observed that you have not issued Invoices against the goods whatever you supplied as yet. You are requested therefore to issue the stated Invoices at your earliest as we have to close our Accounts. Your earliest response shall highly be appreciated in this regard.

For Amber Enterprises

Shaukat
Manager Account & Finance

Letter to Suppliers Requesting Invoices

To all suppliers, and service men,

I am writing to you because I would like to request that you send me the invoices of the supplies that I have purchased, and of the services that I got from you. I need these for some very important documents related to my company. Also I used this money from my personal account, and not from the companies account.

So I need them to get my money back. I need these all before the end of the next month so please send them as soon as you can. I hope that you can do what I ask, and I look forward to hearing back from you.

apologies if similar question had already been posted here, but I couldn’t find an answer.

We have a balance on the customer account in accounts ended 31.03.14 of just over �26k for 6 different invoices.

Now this customer has decided to start as the new company to get finance and is ready to pay our invoices but their bank cant accept invoices dated before company registration date.

They have asked me to re-issue all invoices (for the same amount, even the same customer name) but with today’s date on them.

Can you please advice whether it is OK just to send off those invoices without posting them in our accounts and record the payment against original invoices?

Many thanks in advance!

What does the invoice have to do with the bank? When did banks ever look at the dates on invoices that a company is paying?

If you change your invoice dates the link to when the revenue was earned will be lost so your own accounts will be wrong by what I would assume to be a material amount (and your business would get in trouble for earnings management).

Personally I would keep my original invoices but, if they are adamant you could issue an off system invoice which to the outside world consolidates the existing six invoices only for the purpose of the invoice with the reality being the six still remain on your system and the consolidation invoice is more of an account statement that exists off it.

Of course, the company that you did the work for does not actually exist anymore. Is the forming of the new company dependant upon your agreement as an existing creditor? Will you be throwing the strength of your position away by agreeing to the request or perhaps ensuring that you never receive the money if you do not?

Your revenue still needs to be reported in the correct period and carried as a debtor to the following period where it is cleared by the payment even though the invoice is not to the same company that the sales was originally made to as its a reconstruction rather than a bad debt.

Will you treat the two as the same company through your system?

Remember always that you did the work for the old company that is paid by the new one. I appreciate that it would be very easy to end up with a situation where it looked as though the work had been done twice but paid for once with the old company being a bad debt but if you ended up with that it would be wrong.

Also watch out for the client expecting that with a reissue of invoices they are expecting a restart of the credit terms. Nothing has moved from you wanting immediate payment for an outstanding debt.

Also beware issueing new invoices to a company that no longer exists.

Wit the number of variables and inherent risk in this scenario you really need your companies accountant iwho is privy to all detail of the scenario nvolved in the decision making prior to agreeing to anything.

As a complete aside, you may also want to look at your companies credit control that a client was allowed to get to this stage without someone pulling their credit line.

Good luck with getting the money Ozia,

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.

How to reissue an invoice

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Hi How do I create a custom order in the convo (assume you mean conversation) area? thanks.

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So it comes through like a regular listing, but with the “reserve for”? Is there anything that keeps someone else from purchasing it if the pre-arranged buyer is slow?

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I’ve done this before, but I didn’t describe the item in any way, shape or form (except that it was an item reserved for a certain Etsy member) so that if someone did decide to be meddlesome, they would have no idea what they were buying (and I would have just canceled and relisted). And I did not mention the buyer’s ID to protect their privacy.

However, I didn’t know that you could handle custom orders through convos. That strikes me as simpler and more convenient.