Complete guide to what an amending invoice is, how it is issued and when to use it

The billing process of a business includes the creation, recording, sending, and collection of invoices issued by a business, this way you have a controlled record and can see your highest and lowest sales, have expense control and an overview of your business's liquidity.

As you can see, tracking your billing is important, for this reason it is advisable not to make mistakes but in case they occur, the corrective invoice tool has been developed, where you can rectify your invoices made in an efficient way with taclia.

‍

What is an amending invoice?

The corrective invoice is a document created to modify an existing invoice, that is, the original one, or to add incomplete data.

‍

Amending invoice or electronic invoice?

They are two different things but are related to each other since the format is the same, digital. In taclia you find both options.

To learn a little more about electronic billing, we invite you to attend the Webinar (an explanatory video about electronic billing) by Jose de la Torre, lawyer, who explains everything related to it.

‍

What are the most common errors when issuing a rectified invoice?

→  Error in some of the invoice data

→ Customer name

→ Invoice number and in case of a series number failure

→ Error in indicating the tax jurisdiction

→ Date of the invoice

→ Lack of important information

→ Errors in the stated calculations

→ Incorrect base amount (VAT or income tax)

→ Payment term

‍

What are your legal rules of use?

In general terms, to issue a amending invoice, the original one does not comply with some of the parts established as mandatory in articles 6 or 7 of the Billing Regulations, approved on November 30, 2012.

‍

Mandatory requirements for an amending invoice

The main requirement to meet is to indicate that it is a corrective invoice, and it is even better to indicate it at the top of the document, regardless of whether it is on the right or left.

Conditions it must have:

• Detail of the correction that is going to be made.
• The number of the corrective invoice, it must have a numbering and a series different from the original invoice.
• Include the numbering and date of the original invoice.

‍

And since it is still an invoice, it has the same mandatory data as a simple invoice:

• Date of issuance of the corrective invoice
• Fiscal data of the issuer and the recipient
• The concept, mentioning the reason for billing (service or product)
• Tax rate, that is, the applicable percentage
• Taxable base and total amount of the corrective invoice

‍

Tips for avoiding errors when making an amending invoice

It is important that once you find the error, you change it instantly, however, there is a 4-year period from the date the document was issued to create corrective invoices.

For a corrective invoice to be correct, it is very important to consider all the mandatory points, but to delve a little deeper into the subject, it is necessary to identify and mark the invoice you want to correct with its original series number, otherwise it will not have any valid weight.

Identifying the reason for the correction is important, it can range from entering incorrect customer data to invoice number, so when you are going to create a corrective invoice, make sure that all the data is clear and precise.

Once the error is found, it is crucial that the modification in detail is explained in the concept, in case you have to give any kind of explanation in the future to any of your clients, not only will you be able to compare it with the original but the reason for the modification will be well specified.

‍

Benefits of an amending invoice

There are two benefits we want to highlight so that we understand better the purpose of a corrective invoice.

• Preserve the validity of the original invoice. By creating a corrective invoice, you are not only correcting that error but also preserving the validity of the original.
• Changing agreed terms. This type of invoice also allows you to change agreed conditions from the original, such as changing delivery dates or the same product.
• More than one invoice can be corrected in the same corrective invoice.

‍

Example of an amending invoice

‍

We would like to end this blog by emphasizing the importance of knowing the required data that a corrective invoice must have, such as customer data, original invoice series and number, and a detailed concept of the correction that has been applied. Lastly, we encourage you to review some of your invoices that are about to reach their time limit (4 years) to avoid any legal and fiscal consequences.

From taclia we invite you to try our corrective invoice model for free at www.taclia.com, where you can also discover other functionalities that we offer to make the day-to-day operations of a business much easier.