If an invoice you have already issued is wrong, the fix is a credit note. you do not edit it and you do not delete it. You issue a credit note, which reverses the invoice in whole or in part, and then issue a corrected invoice if one is needed.
The reason is the audit trail. A deleted invoice leaves a gap in your numbering, and a gap is what an auditor asks about.
When to issue a credit note
- The amount was wrong
- Goods were returned
- The service was not delivered, or only partly delivered
- A discount was agreed after invoicing
- The invoice went to the wrong client
- VAT was charged incorrectly
What it must contain
A credit note against a tax invoice is itself a VAT document. It should carry:
- The words Credit Note
- Your business details and VAT number
- The client's details
- Its own number, from its own sequence
- The date
- The number and date of the invoice it relates to
- The reason for the credit
- The amount credited, the VAT and the total
The reference back to the original invoice is the part people leave off, and it is the part that makes the document usable by anyone reconciling the account.
The sequence
| Step | Document |
|---|---|
| Invoice issued for R6,555.00 | INV-0148 |
| Error found: wrong quantity | — |
| Credit note reversing R6,555.00 | CRN-0012, referencing INV-0148 |
| Corrected invoice issued | INV-0149 |
The original invoice stays in the record. It was issued, it was reversed, and both facts are visible.
Common questions
Can I just edit the invoice if the client has not paid?
If it has been sent, treat it as issued. Editing a document someone already holds is how two versions of the same invoice end up in circulation.
Does a credit note need its own numbering?
It should have its own sequence, so it never collides with your invoice numbering.
What if I only need to reduce part of the amount?
Issue a partial credit note for the difference and reference the original invoice.
Quote to Invoice keeps each document type on its own numbering, so corrections never break the sequence.
Create your invoice- Value-Added Tax Act 89 of 1991, section 21
Disclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.
