Invoicing and record-keeping are a daily occurrence for every entrepreneur. This is essential for the company to function as it should - in accordance with the law and the regulations in force. But what if an error is found on an invoice? Does it then become invalid? How do you deal with such a problem? Let's talk about the correction note that can be issued by the buyer. When is it useful? 
Correction note - what is it?
So-called paperwork is not associated with anything pleasant. We spend hours in front of a pile of documents or at the computer and try to properly prepare all the necessary letters. Running a business is more than just engaging with contractors, increasing sales and conducting advertising and marketing activities. Hiring a good and professional accountant sometimes turns out to be the best business investment. Nevertheless, we can never be one hundred per cent safe from mistakes and minor errors.
The credit note is a document used to correct irregularities in invoices - it is issued by the recipient and is not subject to accounting. It is therefore safe to say that the credit note is one of the ways of correcting an invoice that was drawn up earlier, in which not everything is correct. Such a solution will certainly be useful in every company.
Correction note - what should it contain?
When an error has occurred on an invoice and we ask the buyer of the goods or services to prepare a correction note, we should ensure that it contains the following elements:
- clearly marked: "Correction Note";
- a sequential number together with the date of issue of the document;
- the name of the issuer of the note and the issuer of the invoice requiring correction, together with their addresses and VAT numbers;
- data included in the amended invoice, such as: date of issue, invoice number, parties to the transaction, quantity of goods and their names;
- showing the content of the corrected information with the correct, correct content.
What can be corrected by an adjustment note?
The issuing of a credit note by the purchaser quickly resolves the problem of errors found on a prepared invoice. However, many entrepreneurs have various doubts and questions: can the invoice number be changed by means of a correcting note? Exactly what information can be corrected in accordance with the regulations? It turns out that this type of document should be drawn up when the mistake concerns descriptive elements of the invoice, which include:
- incorrectly entered address: buyer or seller;
- error in VAT number;
- incorrectly stated date of payment, sale or collection;
- incorrect labelling of a product or service;
- mistake in the name of the goods.
Please note that the correction note cannot be used to correct the complete data. If you need to change most of the information on the document, in this situation you should draw up a correction invoice.
Correction note - is approval required?
We already know what can be corrected by an adjustment note. However, there is still the question of acceptance of the document drawn up. Do we need it? It turns out that yes, as follows from Article 106k paragraph 2 of the VAT Act - the purchaser should receive acceptance of the issued adjustment note. Unfortunately, the regulations did not include a specific manner of its preparation - however, this means discretion. Many entrepreneurs simply sign a copy of the issued correction note. Some send an e-mail to the purchaser stating that they accept the document.
What can be changed by a correcting note - when to draw up a correcting invoice instead of a note?
We mentioned above that if there are numerous errors on the original invoice, it is not enough to write a correction note - we have to prepare a correction invoice. It is worth bearing this in mind in order to avoid making further mistakes, which can turn into quite a mess. Which failings do not lend themselves to being rectified by a correction note and require a special invoice? Below is a complete list:
- units of measurement and quantities of products delivered or services provided;
- return of goods or payment - even only partially;
- discounts and rebates after the original invoice;
- any calculation errors, e.g. making a mistake in calculating the VAT rate, giving an incorrect value for a good or service.
- The adjustment note is also not applicable when we want to correct the total amount of receivables, net sales values or unit prices of articles. As you can see, the credit note is only useful if you need to make minor corrections that have nothing to do with key information such as tax rates or other amounts. Sometimes traders do not just make mistakes on individual items. It is not uncommon for the entity's details and address to be incorrect. In such cases, the note is of no use and a correction invoice must be drawn up.
Choose InPost Subscriptions for businesses and send parcels at a fixed price.
Take one minute to leave your contact details and start sending parcels from as low as 11.89 PLN*.
- One contract for courier and Paczkomat shipments
- Free courier pickups
- Express delivery
- Price guarantee for the duration of the contract
- Fuel surcharge included
- Dedicated post-sale support
* Net price per Paczkomat shipment in the Subscription 600 plan.
Czytaj również
