Manually Create Corrective Invoice in AR

This document explains how to create a corrective invoice or credit note based on an incorrect customer invoice or credit note created in one of these programs:

A common situation in which a corrective invoice is created is when an incorrect VAT code or VAT registration number is used on the original invoice.

Correction of Other Customer Invoices

Invoices based on customer orders, service orders, maintenance orders, and project orders are corrected in a similar way in the corresponding module.

Opening balances from a legacy system entered as invoice records in 'Customer Invoice. Enter' (ARS100) are reversed in 'Voucher. Reverse' (GLS900), as described in Reverse Voucher.


You have:

The original invoices are still open.

Send the corrective invoice – and, in the second scenario, the credit note as well – to the customer or payer.

When the payment is received, match it against the invoice records (original invoice, credit note and corrective invoice) in 'Payment Received. Record' (ARS110).

The following are updated:

Before you start

Parameters to set

Program ID/Panel Field The field indicates …
(CRS406/E) Invoice category

... the category of customer invoices to create manually using FAM function AR20 in 'Customer Invoice. Enter Manual' (ARS120).


0=Regular invoices.

1=Credit notes. The invoice entry is made with positive amounts and the account entries are reversed automatically.

2=Corrective invoices. The number of the original invoice – the invoice to credit – is entered when creating the corrective invoice.

(CRS406/E) Corrective method

... how to create a corrective invoice if alternative 2 (Corrective invoices) was selected in the 'Invoice category' field.


1=Corrective invoice that is created for one or several invoice lines in the original invoice. The printed invoice displays the reversed invoice lines and the new replacement invoice lines. A reference to the original invoice is printed on the invoice.

2=Corrective credit note and new invoice. The original invoice is fully credited by means of a credit note with the same accounting lines as the original invoice but with reversed signs. A new invoice with the correct invoice lines but with no reference to the original invoice is created as well.

Note: You cannot correct an invoice using corrective method 1 if it already has been adjusted using corrective method 2, and vice versa.

For cross-division vouchers (invoices that have been created centrally and the revenue distributed between several divisions), only corrective method 2 is valid.

(CRS406/E) Subtotal

... whether subtotals of new invoice lines replacing a specific invoice line in the original invoice will be printed on the invoice.

This check box is only applicable if you selected invoice category 2 and corrective method 1.

(CRS406/E) Negative sign

... whether negative invoice line amounts and quantities will be printed with a negative sign on the corrective invoice.

This check box is only applicable if you selected invoice category 2 and corrective method 1.

Follow these steps

Initiate Generation of Corrective Invoice

  1. Start 'Customer Invoice. Enter Manual' (ARS120).

  2. Select the Select option for a FAM function detail record with corrective method 1 or 2.

  3. On the E panel, enter the number of the original invoice.

    By prompting in the 'Original invoice' field, you can search for all invoices that can be corrected per invoice number and year in 'Customer Invoice. Display Manual' (ARS122). You can also reprint invoices in the same program.

    If the original invoice already has been corrected by a corrective invoice that now must be corrected in turn, you still enter the original invoice number. M3 automatically recognizes that a previous corrective invoice exists and displays the corrected invoice lines of the previous corrective invoice together with the uncorrected invoice lines of the original invoice on the H panel.

  4. Also, on the same panel, enter the invoice year, new invoice, and accounting dates, and select whether to use the original invoice date or the new invoice date as the VAT rate date. Press Enter.

    The VAT rate date determines which date to use when selecting a VAT rate for the new invoice lines.

    Note: Use the same VAT rate date if you create several corrective invoices based on the same original invoice.
  5. On the F panel, enter a person as a reference whom the customer or payer can contact if there are any questions regarding the invoice (optional). Press Enter.

  6. On the G panel, review, adjust, or complement the payment details such as payment terms, due date, and cash discount terms. Press Enter.

    The payment details are proposed from the header of the original invoice.

    Note: If the FAM function has corrective method 1 and the 'VAT calculation on cash discount' check box is selected in 'Country. Open' (CRS045), no cash discount details can be changed.

    If account supplementation is selected for the FAM function used, you can also enter any additional accounting IDs in the accounting string for the accounts receivable account on the G panel.

  7. If you selected a FAM function with corrective method 1, go to step 8. If the FAM function has corrective method 2, go to step 14.

    Create Corrective Invoice for Specific Invoice Lines

  8. On the H panel, where the invoice lines of the original invoice are displayed, select the Select option for an invoice line to correct.

  9. Press Enter to reverse the selected invoice line.

    The invoice line is now displayed with a reversed sign for the line amount.

  10. Create a new invoice line by entering any of these values in the panel footer: invoice line text, line amount, VAT code, quantity, unit of measure, and unit price. Press Enter.

  11. Select one of these alternatives:

    • If needed, add more new invoice lines on the same panel, as described in step 10, and press Enter after each one of them.
    • To select another invoice line from the original invoice, press F14 (New line) and repeat steps 8–10.
  12. When you are finished with the corrections, press F3.

  13. On the coding panel displayed, enter the offsetting accounting string. Press Enter and then exit (ARS120) to create the corrective invoice.

    On the coding panel, the revenue for the reversed lines is displayed in a separate accounting line based on accounting rule AR20–122.

    Create Credit Note and New Invoice

  14. On the H panel, where the proposed invoice lines of the new invoice are displayed (a credit note has been created automatically in the background based on the original invoice, but those invoice lines are not displayed), select the Change option for an invoice line to correct.

  15. Make the necessary changes and repeat the step for any other invoice lines to correct. When you are finished, press F3.

  16. On the coding panel displayed, enter the accounting string to offset the accounts receivable account and press F3.

  17. Exit (ARS120) to create a credit note for the original invoice and the new, corrective invoice with the adjusted invoice lines.

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