I am using a simple accounting system to create and send out invoices. Let's say I have Invoice No. 18 with an amount of $1,000. I have already sent this invoice to the customer. Now by nature of the accounting system being digital, I am allowed to edit Invoice No. 18 anytime. Let's say I revised Invoice No. 18 to $1,200. So now, Invoice No. 18 is $1,200.00 but customer still have Invoice No. 18 as $1,000 in his email. Now I can: 1. Send another Invoice No. 18 with the revised amount. But he will have 2 Invoice No. 18 with different amounts. 2. Issue Credit Note of $1,000 for Invoice No. 18 and re-issue Invoice No. 19 with the new amount of $1,200. 3. Issue Invoice No. 19 with an amount of $200.00. So Invoice No. 18 + Invoice No. 19 in total will be $1,200. Also, same question if it's a deduction and not an addition.
How to properly revise a digital invoice?
Answers
Number 1 is fraught with issues, shy away from it.
Number 3 can be done if the customer is on board and understands what you are doing.
Number 2 is the best bet. It's nice and clean. Credit say void invoice of 18 due to error, invoice 19 says corrected invoice based on invoice 18.
If it is a deduction, you can just do a credit. ALWAYS TALK WITH CUSTOMER SO THEY UNDERSTAND YOUR ACCOUNTING!!!
Anon
Ask your accounting software provider if there is a configuration setting that a system admin can change to prevent posted invoices from being edited. Some of the basic accounting systems allowed that (may still allow it) but as Wayne stated above, it is fraught with issues. I would say it's "fraught with fraud:)."
Option 2 is preferred, for obvious reasons.
Len