How do I change or cancel an unpaid invoice?
It takes a great deal of rigour to draw up an invoice correctly... but mistakes can still be made. That's why every supplier has to cancel an unpaid invoice. The procedure may seem simpler than when the invoice has already been paid, but it must be done in such a way as to comply with French legislation.
So how do you legally cancel a supplier invoice for accounting purposes? We tell you everything.
When should you modify or cancel a supplier invoice?
There are several reasons for cancelling or amending an invoice that has already been sent to the customer:
- an error has been made in the amount ;
- the document does not comply with standards (e.g. lack of compulsory information );
- the invoice is double-entry;
- you finally wish to grant the customer a discount after sending the document, etc.
On the other hand, an invoice can only be cancelled if the billing error causes ambiguity and has a significant impact. There's no point in making changes for a simple spelling mistake!
Who cancels or amends the invoice?
It is up to the company that made the mistake to cancel the initial invoice. The customer, on the other hand, cannot touch it: the new document created would have no repercussions for the tax authorities.
However, if they notice any problems, they can notify their supplier by means of an invoice cancellation letter, so that they can take the necessary steps.
How do I change or cancel an invoice?
What does the law say?
In reality, you cannot cancel an invoice as such. This is because your customer has already included the original in his accounts.
What's more, since the 2018 VAT anti-fraud law, invoicing software and cash register software must guarantee the inalterability of recorded transactions. In other words, you do not have the right to delete or modify an unpaid invoice created using these tools.
Finally, in the event of an audit by the tax authorities, all your transactions must be traceable. Consequently, no "holes" in the numbering of invoices are allowed: any failure to do so constitutes an offence.
💡 Good to know: keep all your invoices for at least 10 years, even those containing errors.
In these circumstances, what solution is available to you?
The rectifying invoice
To amend or cancel an unpaid invoice, you need to issue a rectifying invoice.
This will repeat the original invoice, adding to it if any information is missing, or correcting any errors.
However, there are certain formalities to be observed when drawing up this document:
- The rectifying invoice must have its own numbering, not that of the document to be cancelled. The law :
- does not allow two invoices to have the same number,
- imposes very precise numbering rules: it must be continuous and chronological.
- The rectifying invoice must refer explicitly to the one to be cancelled. This is why the number and date of the original invoice should be referred to in the body of the document, for example by stating: "Cancels and replaces invoice no. [number of invoice replaced]".
- The rectifying invoice must include all the information required on a traditional invoice. This includes, in particular, information relating to the identity of your company, as well as that of your customer.
Finally, we advise you to contact the customer as soon as possible if you find you have to cancel the invoice:
- this way you avoid having to pay the invoice in the meantime, which would oblige you to issue a credit note invoice;
- you confirm that the first invoice is null and void.
Example of a cancellation invoice
How can I avoid cancelling or amending an invoice that has already been issued?
The easiest way to avoid having to issue an amended invoice is simply to limit the risk of errors.
That's why we recommend that you use invoicing software.
These tools offer a number of advantages:
- They automate the issuing of invoices (conversion of estimates into invoices, automatic calculation of the amount excluding tax, VAT and the amount including tax, etc.) and avoid manual processing and data entry, which are sources of errors.
- They provide standard invoice templates: no need to search for the legal information you need to include, just fill in the document with your customer's details.
- They are configured to comply with current legislation and regulations. In particular, this feature makes it easier to comply with the principles of invoice numbering.