Re: Alteration of invoice?


"Ronald Raygun" <no.spam@xxxxxxxxxxxxxxxxxxxxx> wrote in message
news:rmBDm.5518$KR3.3222@xxxxxxxxxxxxxxxxxxxxxxxxxxxx
Fredxx wrote:

I am in a dispute with a customer for some work I have done. The
original
invoice was sent a while ago, and the customer has pointed out, foolishly
I might add, that some items in the original invoice are less than agreed
as per contract.

I therefore need to amend this invoice to show the correct amounts.

Should I send a credit note, dated the same date as the original invoice,
and send a new invoice (with the same date) with the correct amounts, or
should I do this another way.

If the customer was right that your invoice charged him an incorrect
amount
I'm not sure why you describe him as foolish to point this out. It would
seem eminently sensible, and refreshingly honest if you undercharged him.

What would be foolish, though, and I suppose this must be what you mean,
is to use this as an excuse to deem the entire invoice invalid and to
delay settling it (especially when the amount in error is small compared
to the whole).

What he should have done is either pay the amount he believes you should
have charged, and get you to fix the paperwork later by means of a
receipted
supplementary invoice for the difference, or else pay the amount invoiced
and get you to send an unreceipted supplementary invoice for the
difference.

Alternatively he should have pointed out the mistake early on, giving you
the opportunity to correct the paperwork straight away.

I do *not* think you should now send a corrected replacement invoice
together with credit note cancelling the entire original invoice, because
this would probably give him another month or two to pay up before you
could sue. It might also invalidate your entitlement to late payment
charges if you cancel the original invoice. I think you should simply
send a supplementary invoice for the difference, or possibly a credit
note for the incorrectly billed items together with an invoice for the
correct ones:

Suppose your original invoice was for £200 labour plus materials of
5 widgets at £4.90 each, which should have been £5.10 each. Then either
send a credit note for £24.50 and an invoice for £25.50 or an invoice
for £1 (containing detail of minus 5 at £4.90 plus 5 at £5.10). I'm not
up on dating conventions, but I would date these documents today, not
backdate them to the date of the original invoice. Of course they should
still contain a reference to the original date of supply. In either case
I would send an accompanying "Statement" (certainly dated today) listing
all the invoices issued and still outstanding, including any charges in
respect of late payment, and showing the total amount due.

He'll probably wait until you commence proceedings (if you haven't
already)
and then pay up, leaving you out of pocket to the tune of the court fee.

I am about to take him to court so feel I
must get this bit of admin correct.

I don't think minor errors in the invoicing are critically important.
The debt doesn't arise as a result of the invoice, it arises out of the
contractual obligation.


I thought the date of an invoice should be the tax point, or date of supply.
So sending another invoice with a more recent date would be shifting income
from one tax year to another. I thought this was frowned upon?

The customer has already paid part, which has caused some confusion, but far
less than even the original invoice.

I have to admit that I was being a little economical with the truth, where
actually I have already started county court proceedings, small claims
track, for the correct amount and not the originally invoiced amount. The
contract documentation and the subsequent email conversations do indicate
the full amount.

The bit about contractual obligation is an interesting point, but surely the
debt only falls dues when it is asked to be paid, via an invoice?

The Court fee element is trivial in comparison of the time wasted through
his procrastination of payment. The hearing fee is less so!!

Many thanks for your reply.


.

Relevant Pages

  • Re: Alteration of invoice?
    ... original invoice was sent a while ago, ... I therefore need to amend this invoice to show the correct amounts. ... Should this be for the full amount, ...
    (uk.business.accountancy)
  • Re: Alteration of invoice?
    ... that some items in the original invoice are less than agreed ... I therefore need to amend this invoice to show the correct amounts. ... I have already stated I am charging him for compensation and interest. ...
    (uk.business.accountancy)
  • Re: Alteration of invoice?
    ... that some items in the original invoice are less than agreed ... I'm not sure why you describe him as foolish to point this out. ... delay settling it (especially when the amount in error is small compared ...
    (uk.business.accountancy)
  • Re: Alteration of invoice?
    ... that some items in the original invoice are less than agreed ... If the customer was right that your invoice charged him an incorrect amount ... I'm not sure why you describe him as foolish to point this out. ...
    (uk.business.accountancy)
  • Re: Alteration of invoice?
    ... invoice was sent a while ago, and the customer has pointed out, foolishly I might add, that some items in the original invoice are less than agreed as per contract. ... Should I send a credit note, dated the same date as the original invoice, and send a new invoice with the correct amounts, or should I do this another way. ... By all means put the original date on this new invoice, though I doubt it will speed up payment of the second tranche. ...
    (uk.business.accountancy)