Credit Notes

Question asked by YUSUF 8 years ago

I raised an invoice but realised it should not be done until the signed Client Order has been received. The invoice was never issued to the Client and I immediately raised a credit invoice manually to cancel the initial invoice.

I have left the company but they are trying to pursue the outstanding amount with the Client after nearly five months. I told them that the invoice was credited but they are telling me I cannot do that and its fraud.

I told them that had I still be working for them then they would probably reprimand me for not following the internal procedures but it was made clear to them, that it is not an offence to raise a credit note, manually or otherwise. This is not fraud.

What is your opinion

Regards

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2 Replies

Hi YUSUF

If, as you say, the invoice was invalid, because no order had been received, and you followed internal procedures in countering the invoice with a credit note then that should be the end of it.

In a similar situation, if there was a chance that the invoice was going to be raised, once the order was received, then I'd have voided the original invoice and re-entered it as draft but, raising an internal credit note seems OK to me.

Best answer
8 years ago

Hi Yusuf,

I believe that what Paul has advised encompasses my response completely.

Thanks Paul for more great advice.

Theo

8 years ago

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