Corrective invoice
A corrective invoice (or credit note) is a document that corrects or cancels an already-issued invoice that contains an error, without erasing the trail of the original invoice.
When you need a corrective invoice
When there's an error in the tax details, the amount, the VAT rate applied, or when a later discount, a return, or any change to an already-invoiced transaction needs to be recorded.
Why you can't simply delete the original invoice
Because invoice numbering must be sequential and without gaps (see how to number invoices). Cancelling or "disappearing" an invoice creates a gap in the series, which can raise questions during an audit. A corrective invoice fixes the error while keeping a record of both documents.
What information it should include
It should have its own sequential number, clearly state that it's a corrective invoice, and reference the number and date of the original invoice it corrects, as well as explain the reason for the correction.
An example
You issued a £1,000 invoice with 10% VAT when it should have been 20%. The corrective invoice cancels that difference and sets the correct amount, with an explicit reference to the original invoice.
How to make one with PreFactur
You can generate a new invoice, note in the terms/notes that it's a correction of invoice number X, and detail the reason for the adjustment in the line descriptions.
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