Two Correction Tools
A credit note reduces or cancels an amount previously billed. A replacement invoice presents the corrected bill. They can form part of the same correction chain; receiving a new invoice does not by itself explain what happened to the original.
These are document concepts. The actual supplier evidence and applicable accounting and tax rules determine the valid correction route and treatment.
Keep the Chain
Preserve the original invoice, correction reference, dates, reason and amount effect together in the authorized record. A later document needs an evidenced link to the earlier one. Overwriting the original loses the explanation of what changed; counting both original and replacement without the corresponding cancellation can overstate the amount.
Two Scoped Terminology Examples
In UK VAT guidance, HMRC says to ask a supplier to correct an incorrect invoice and issue a new one. Its returns-and-exchanges section describes replacement invoices or credit/debit notes; the notes show the original VAT invoice number and date and the reason. These statements concern UK VAT, not a worldwide document-content rule.
New Zealand GST guidance uses supply correction information. It identifies the original taxable supply, for example by invoice number, and gives the correction date and correction. Local terminology and requirements elsewhere may differ. Neither example supplies a tax amount or entry for this page.
A Fictional Chain
All references, dates and USD amounts below are invented, with no tax, fee or exchange effect. INV-501, dated October 5, 2026, bills 1,000 USD. The supplier agrees 200 USD was overbilled.
| Illustrative Documents | Arithmetic | Net Billed Amount |
|---|---|---|
| INV-501 and linked CN-501A for −200 USD | 1,000 − 200 | 800 USD |
| INV-501, linked CN-501B for −1,000 USD, and linked replacement INV-502 for 800 USD | 1,000 − 1,000 + 800 | 800 USD |
These alternatives explain the arithmetic; they are not interchangeable options in every accounting or tax system. If INV-502 arrives without an original-invoice reference, its link remains unresolved until the supplier confirms it in writing. The reader cannot cure that gap by assuming which bill it replaces.
Who Decides
The local finance or tax owner checks the actual correction and rules and determines entries and tax treatment. This reference releases no payment or refund. HMRC's July 2026 procure-to-pay guidance, supplier payment control 6, requires valid reasons and an audit trail for payables adjustments within UK VAT compliance. ACNC's financial controls discuss Australian charity delegations. Undated pages were checked November 1, 2026. These sources do not prescribe this teaching table.
The delivery mismatch guide addresses a separate investigation. Use the procurement policy worksheet for locally selected authority.