Electronic billing will minimize the likelihood of making mistakes; these happen and can have consequences.
When issuing an electronic invoice, there may be the possibility of making a mistake. Whether we realize it ourselves or our clients, let us know when we receive the documents. Correcting them is by canceling the existing invoice and issuing a new one. By doing so, the SAT will notify the canceled invoice is invalid, and you can continue your accounting regularly.
It is essential to consider that according to the law, the recipients must verify that the electronic invoices comply with the requirements.
Emitters
If you issue an incorrect invoice, the recipient has not realized the error. Still, you do. You must notify him of the mistake and cancel the invoice immediately to issue a new one. Failure to do so could result in a fine between $12,000 and $69,000, and your client or employer cannot deduct the tax expense. The most common mistakes when issuing an electronic invoice are:
- Poorly write the RFC of the company that gets billed.
- An inadequate description of the service.
- Lack of proper breakdown of the payment of ISR and VAT.
Receivers
The first thing you should do as a receiver is to review the document you just received. If you find any fault, notify the issuer, preferably in writing, so that you can generate a new CFDI. We recommend that it be in writing because if the issuer does not respond to the request and the SAT performs an audit, you will have proof of recommendation.
The next step will be to cancel the incorrect invoice since the issuer could only issue a new invoice but not cancel the previous one. You can do this by entering the SAT page and monitoring the status of your CFDI.
How to Avoid Errors in Online Invoicing
If you design a confusing invoice, you will have to delay payment, leading to reputational damage to your company. There are usual mistakes that businesses make while asking for payment.
Use of Manual Systems
Still, SMEs are using paper invoices. As a result, they are slow in sending deliveries, take time in proceedings, and are liable for duplication. They have inaccuracies and mostly get in trouble. Accounting software issues invoices electronically and boosts efficiency.
You can easily afford such electronic software to monitor the payment method and transfer automatic reminders for bills you did not pay.
Getting Erroneous Information or the Wrong Person Getting the Invoice
If there is a mistake in a company’s name spelling or an issue addressing incorrect invoices, delays will happen. Companies ask for a new invoice and reissue amended documents once a mistake. To avoid confusion, explain your products and services in detail. Do not let your customers make an excuse for conflicting with the invoice.
Requesting for an Incorrect Amount
This mistake is highly time-confusing and can get you in trouble. You should always check the mentioned price two times to ensure it is the one you can make customers. As a result, you will get a job quickly. After getting a rejection letter for an incorrect invoice, you must send a cancellation invoice with a new number. You will also add the negative amount, issue date, and invoice number, which must be original. You can raise your correct invoice by adding a different invoice number. Later, HMRC should seek clarification with an original invoice reference.
Add the Wrong Rate of VAT
Be specific while using the correct calculation for the products and services you are providing. It can only happen if your business has VAT registration. Ensure clients know how to protect themselves, giving them a nasty shock. You can ensure this when your rate is 20% different from the standard VAT level or registered for VAT recently.
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