Definition
A void invoice is an invoice that has been cancelled so it no longer counts as a request for payment or as revenue. It stays on file, marked "void", so the numbering sequence has no gaps. Voiding is used for invoices issued in error, before any payment has been received.
Also called: Voided invoice, Cancelled invoice
Void invoice in practice
Never delete an issued invoice. Mark it void, note the reason, and issue a corrected invoice with a new number. Where VAT or GST applies, or once a payment has been made, use a credit note instead, since tax rules often do not allow simply voiding an issued tax invoice.
Frequently Asked Questions
Should I void an invoice or issue a credit note?
Void it if it was created in error and the client has not paid or recorded it. Issue a credit note if the client has already received, recorded, or paid it, or if tax rules require one.
Can I reuse the invoice number from a voided invoice?
No. Keep the voided invoice on file with its original number and give the corrected invoice the next number in the sequence. Reusing numbers creates gaps or duplicates that are hard to explain in an audit.
Related terms
- Credit note A credit note is a document a seller issues to reduce or cancel the amount owed on a previously issued invoice.
- Invoice number An invoice number is a unique identifier assigned to each invoice so it can be tracked, referenced in payments, and audited.
- Write-off A write-off is the accounting action of removing an uncollectible or forgiven invoice balance from accounts receivable and recording it as an expense.
- Audit trail An audit trail is a chronological record showing who created, changed, sent, or deleted each financial document or transaction, and when.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.