Cancelled Invoice / Credit Note - Proper Procedure

Hi ,

I raised an invoice from an estimate for a service that was due for completion end of december with payment due on the day.

We have decided out of a gesture of goodwill that we will not pursue payment of the invoice, what is the correct procedure to ensure the invoice shows as zero and the client does not owe anything, with accounting and auditing i doubt it is as simple as just deleting the invoice with no explanation.

Any help much appreciated.

You need to raise a ‘Credit Note’ for the invoice and send to the client, if possible, try to raise the credit note with the same date as the invoice or within the same Quarter if you’re VAT registered and/or Financial Year end, click here to see our knowledge base guide on ’Credit Notes’.