How to Correct an Invoice: Credit Notes and Reissues
Mistakes on invoices happen — a wrong amount, a missing PO number, the wrong client entity. The safe way to fix them is to leave a clear paper trail rather than silently editing the original.
By the Invoice Faster team at Digimarket Group SIA · Updated 3 November 2026
Before it is sent: just fix it
If the client has not received the invoice yet, simply correct it and send the right version. Keep the same number only if the incorrect version never left your hands and was not recorded in your books.
After it is sent: do not edit and resend under the same number
Once an invoice has been sent, the client may already have recorded it. Sending a different document with the same number creates two conflicting records. Instead, use one of the methods below, depending on your country’s rules.
Method 1: credit note plus new invoice
- Issue a credit note (with its own number) that refers to the original invoice and cancels it in full, or reduces it by the incorrect amount.
- Issue a new invoice with the next number in your sequence containing the correct details.
- Tell the client which documents to process and which to disregard.
This is the most widely accepted approach and is common in EU VAT systems.
Method 2: corrective invoice
Some countries use a “corrective invoice” that references the original and shows the before-and-after values. Check whether your country uses this format.
Typical situations
| Problem | Usual fix |
|---|---|
| Wrong amount or tax rate | Credit note for the original, new correct invoice |
| Missing PO number only | Often the client accepts a reissue; ask their AP team what they prefer |
| Wrong client legal entity | Credit note, then new invoice to the right entity |
| Partial refund or later discount | Credit note for the refunded/discounted amount |
| Client paid twice | Refund or credit against the next invoice, documented in writing |
What a credit note shows
- The title “Credit note” and its own unique number.
- Issue date, your and the client’s details.
- The number and date of the original invoice.
- The items and amounts being credited (shown as reductions), including any tax.
- The reason for the credit.
Keep everything
Keep the original invoice, the credit note and the replacement together in your records. Retention periods for invoices are set by national law and are often several years.
General information only; requirements vary by country. Ask an accountant when in doubt.