About correction of a released invoice

An invoice with no payments linked to it and no invoice lines from the Shipments (SO302000) or Sales orders (SO301000) window can be corrected by using the Correct invoice action in the Sales invoices (AR301000) window. The system creates a new correction invoice which is a copy of the original invoice. The system also creates a sales credit note for the original invoice in the background. After you make your corrections and save and release the corrected invoice, the original invoice will be matched against the automatically created sales credit note.

On both the corrected and original invoice, there will be a button in the window toolbar with direct links to each other, for you to quickly review the changes. For step-by-step instructions on using the Correct invoice action, see: Correct a released sales invoice.

You issue a credit note, which will be used to decrease a customer's debt, by using the Sales invoices (AR301000) window or the same window you use to create an invoice. The credit note is independent from the original invoice, with no direct reference to it.
You can, however, enter the original invoice reference number in the Description field for the note.
A credit note may have multiple lines or one summary line. Credit notes do not have due dates and may be numbered differently from invoices.

The release of a credit note decreases the customer's balance. The application of a released credit note against invoices, debit notes, and overdue charges decreases the outstanding amount of these documents by the amount of the credit note.

When you release a credit note, the system generates a batch of general ledger transactions that update the asset and income accounts. For details on the general ledger accounts involved, see About invoice releasing.

The following transactions will be posted to the General ledger workspace when a one-line credit note with a VAT is released.

Once a credit note has been applied to an outstanding document, the system generates a batch in only the following cases:

• You have written off some balance along with the application. In this case, the system generates a batch to update the asset account specified for the outstanding document in the Customer ledger account field on the Financial details tab of the Sales invoices (AR301000) window, and the expense account specified in the Account field in the Reason codes (CS211000) window for the reason code you have used to write off the balance.
• The credit note or the outstanding document to which you want to apply the credit note is in a foreign currency.
  The system generates a batch to update the balance of the realised gain or loss (RGOL) account by the amount resulting from the difference in the exchange rate on the outstanding document date and the credit note date.
  The RGOL account is specified for each currency in the Currencies (CM202000) window.

For step-by-step instructions on creating and applying a credit note, see Create a credit note and Apply a credit note to open documents.

It is not possible to increase the outstanding amount of an open invoice (which has been released) or the paid amount of a closed one. You instead issue a debit note by using the Sales invoices (AR301000) window. When you release this document, it increases the debt of the customer; the debit note does not change the balance of any invoice and should be paid as a separate document.
The debit note doesn't contain a direct reference to any original invoice, but you can enter the reference number of the original invoice in the Description field.

Debit notes may be numbered differently from invoices. A debit note is processed similarly to an invoice.
For details on the recording and release of a debit note, see: About invoice processing flow.

When you reverse an invoice, its status and outstanding amount do not change.
You can reverse an invoice in the Sales invoices (AR301000) window in one of the following ways:

• By clicking the Reverse action for the invoice. The system automatically generates a credit note with details similar to those of the invoice; you then need to release and apply to the original invoice. For step-by-step instructions of how to reverse an invoice, see: Reverse an invoice.
• By manually creating a credit note for the full balance of the invoice and then applying the credit note to the invoice.