Corrective invoices

Requirement

In some countries, tax authorities do not accept simple credit notes, but instead require a corrective invoice that shows the initial values and the new values resulting in a variance to be invoiced.

In Poland, a normal credit note is not accepted by tax authorities. Instead, a corrective invoice must be issued. In practice, a corrective invoice includes this information:

1. The header and lines of the initial invoice
2. New lines for the corrective information
3. An additional line for the variance

Corrective invoices must show this information:

• The same information as in the invoice to be corrected
• Corrective information
• The date and the reference number of the corrected invoice
• The date and the reference number of the corrected order
• A corrective reason code

The quantities and values that are corrected on the corrective invoice must not exceed the original values of the order.

A reference from the initial invoice to the corrective invoice is required in invoice documents and SAF-T compliant audit files, designated as JPK (Jednolity Plik Kontrolny):

• VAT evidence in JPK_VAT V7M format
• VAT invoices in JPK_FA (3) format

M3 solution

The requirements for Poland are supported by M3 invoicing functionality:

• Customer Order Management (COM) module
• Multiple Unit Coordination (MUC) module
• Manual invoicing in the Accounts Receivable Ledger (ARL) module

This functionality is provided:

• Corrective invoices with the original amount, the changed amount, and the variance to be invoiced in one document – we recommend that you use this procedure for Poland.VAT evidence in JPK_VAT format
• Corrective invoices with the creation of a fully reversed invoice and a new invoice with the corrected amounts, which results in two separate invoice documents.
• Creation of credit notes.

The initial invoice and the corrective invoice are linked through these references:

• AR extra information number 235 or 255 on the corrective invoice or the credit note
• AR extra information number 235 or 256 on the initial invoice

VAT evidence in JPK_VAT formIn the ARL module, users can manually add a link to the initial invoice number, or delete it, using AR extra information number 255 in 'Customer Invoice. Display Add Info' (ARS216).

Optionally, users can specify a reason code that describes the reason for creating the corrective invoice and print it on the invoice. For Poland, users must specify a financial reason code:

• In the COM module, when creating a corrective invoice from 'CO Invoice. Correct or Credit' (OIS380), in 'Customer Return. Open' (OIS390)
• In the MUC module, when creating a corrective invoice in 'Internal Invoice. Create' (MFS100)
• For manual invoicing in the ARL module, during invoice entry

In the ARL module, users can specify a financial reason code, or remove it, when using AR extra information number 257 in (ARS216).

Configuration guidelines

See Invoices.

Program ID	Program name	Description or comment
CMS103	Finance Reason Code. Open	Set up reason codes for corrective invoices. For each reason code, set the Reason type field to 1-Corrective invoice AR.
CRS830	Language Handling. Open	Optionally, to translate the name and description of reason codes into another language, click the Language button in (CMS103/E). In (CRS830), specify this information: Lng Specify the language code. Description Name Specify the translated description and name of the reason code.
CRS405	FAM Function. Open	For FAM Function AR20, add a function for corrective invoices. Specify this information: Invoice cat. Specify 2-Corrective invoice. Corrective mtd Specify 1-Select invoice line. Subtotal Optionally, select this check box. Negative sign Optionally, clear this check box.
OIS380 OIS390	CO Invoice. Correct or Credit Customer Return. Open	When correcting an invoice, users must set the Corrective mtd field to 1 and specify a finance reason code.