How to deal with corrections on invoices?

[rutger]

Hello WHMCs'ers,

 

Ocaasionally we enter some data incorrectly and a customer is invoiced for something that he should not have been... Or the customer cancels a service and we want to refund a partial amount towards another upgrade...

 

Now we could give the client a credit that he can apply to a new invoice, but how does this work tax-wise?

 

Say we bill a customer for EUR 10 plus 20% TAX = EUR 12. Now the customer calls and we want to revoke this invoice.

 

(1)

If we delete the invoice we mess up our invoice numbering, so we do not want to do that.

 

(2)

If we give the customer EUR 10 credit... he still owes us EUR 2.

 

(3)

If we give the customer EUR 12 credit, we loose EUR 2 because we still need to pay the EUR 2 to the tax people (we created the invoice, remember!).

 

The only thing we can think of that works is to create a new invoice with a negative amount. That works in WHMCS, but does not seem like a nice solution. Addition of a taxable field on credit would help (or at least know how taxing works on credit).

 

Any insights on this?

[SajanParikh]

Not quite sure how taxing works in your country. In the U.S., if you are paid...

 

Item Cost: 10

Tax 20%: 2

 

Total paid to you: 12

 

If he wants a refund, you give him the full 12 back. You don't owe "tax people" 2, because you didn't make the 10.

 

Then just..."cancel" the invoice instead of deleting it.

[othellotech]

The only thing we can think of that works is to create a new invoice with a negative amount. That works in WHMCS, but does not seem like a nice solution

 

a -ve invoice (also called a credit note) is exactly the right way to handle this

[R-n-R]

Isn't this very issue of refunding invoices going to be addressed in WHMCS 4.0?