An invoice correction letter is like an apology letter addressed to a client in which an organization or product/service provider apologizes to a client about making a mistake in the invoice.
In day to day operations, businesses try to focus on error minimization by either hiring expert employees or automating the whole system. In the former choice, the probability of human errors cannot be an optimal zero while in the latter case, although, human error is minimized machine errors such as system failures etc are parallel to the business operations. Therefore, mistakes in invoices are common and corrections have to be made to satisfy as well as keep the clients.
The procedure of this rectification of the mistake includes sending an apology letter, called invoice correction letter, along with the corrected invoice. This rectification process has two steps: cancellation of incorrect invoice and issuance of new invoice. Therefore, it is essential to include the new corrected invoice with the invoice correction letter.
In addition to business transactions being affected between an organization and client, the Tax department or Internal Revenue System (IRS) is also of significant importance in terms of invoice corrections. During tax audits and calculation of tax returns, receipts and invoices hold immense value and tax department do not accept corrected invoices sent from a customer or a client. Therefore, companies have to provide properly corrected invoices to customers as well as keep the corrected invoices in the company records.
The general format of invoice correction letter includes details such as:
- Details of the company or service provider
- Details of the client
- Description of goods/services
- Old invoice number and details
- New invoice number and details
- Details and reason of mistake
- Importance of client to the company or service provider
- Apology and assurance that the mistake will not be repeated
This invoice correction letter should convince the client that the company is apologetic of its mistake and would avoid such errors in the future. In addition, it serves as a proof that the correction of the mistake has been made.
Sample Invoice Correction Letter
Dear Mr. Steven,
Thank you for pointing out our mistake in the invoice (XXXX) sent to you on 20th July 2018 for the purchase of ten fans from our company ‘The Coolness’.
Our system was down on this particular day as we are in the process of automating our invoices. Due to human error and typing mistake, the amount was incorrectly mentioned as $500. As the correct amount is $300, we have canceled the previous invoice (Number # XXXX) when you notified us about the error. We are issuing a new invoice (Number # XXXX) and attaching it with this letter. Luckily, no bank notifications or rectifications are required as no deposits have been made yet.
You have been one of our important clients since the start of our operations and we highly apologize for the committed mistake. We have rectified it in our records and we assure you that any such mistake will not occur in the future.
MS Word [.docx] | Download