Correction Invoices

Correction invoices (also called credit notes) are used to correct errors, process returns, or make adjustments to already issued invoices. They are official documents that record the partial or total cancellation of a previous invoice.

When to Use a Correction Invoice?

Product Returns

Client returns 2 out of 5 units purchased:

• You create a correction invoice with a negative quantity
• You decrease the recorded income

Error in Sent Invoice

You invoiced client A instead of B:

• You create a correction invoice to reverse the original
• You create a new invoice for the correct client

Retroactive Discount

You agreed to a 10% discount with the client:

• You create a correction invoice for 10%
• It is correctly recorded in accounting

Service Cancellation

Client cancels monthly service mid-month:

• You create a correction invoice for the unused days
• You refund the difference

Margin Change or Calculation Error

You made an error in pricing or tax:

• You create a correction invoice to correct it
• You issue a new invoice with correct data

Create a Correction Invoice

Step 1: Open the Original Invoice

1. Go to Invoicing → Invoices
2. Find the invoice you need to correct
3. Click on Create correction invoice (or More options → Create correction invoice)

Step 2: Frihet Automatically Pre-fills

A new invoice is created with:

• ✓ New number (correction invoice series: R-2026-001)
• ✓ Same client
• ✓ Identical lines but with negative quantities/amounts
• ✓ Current date
• ✓ Reference to original invoice (visible in PDF)

Example:

Factura original F-2026-0042:
  - Servicio web: 1 × €1,000 = €1,000

Rectificativa generada:
  - Servicio web: -1 × €1,000 = -€1,000
  - Total rectificativa: -€1,000

Step 3: Adjust Lines if Necessary

If you need to correct only partially:

1. Edit quantities (leave negative)
2. Delete lines that do not need adjustment
3. Add new lines if applicable (e.g., new service after return)

Example: Partial Return

Factura original:
  - Widget A: 5 × €100 = €500
  - Widget B: 3 × €200 = €600
  - Total: €1,100

Rectificativa (cliente devuelve 2 Widget A):
  - Widget A: -2 × €100 = -€200
  - Total rectificativa: -€200

Step 4: Review Negative Total

In a correction invoice:

• The Subtotal will be negative
• The taxes will be negative
• The Total payable will be negative (money to be refunded to the client)

This is correct. Frihet records it as a credit.

Step 5: Send the Correction Invoice

1. Click on Save as draft or Send by email
2. It is registered with a VeriFactu hash as a correction invoice (official document)
3. Client receives the PDF showing the refund

Types of Correction Invoices

Legal Classification (R1-R5 types)

Each correction invoice has a legal type according to the LIVA (VAT Law):

Type	Article	When to use
R1	Art. 80.1-2, 80.6 LIVA	Errors, retroactive discounts, returns. This is the most common type.
R2	Art. 80.3 LIVA	Non-payment or uncollectible debt
R3	Art. 80.4 LIVA	Bankruptcy proceedings (judicial insolvency)
R4	Resto de supuestos	Other cases not covered by R1-R3
R5	Simplified	Correction invoice for a simplified invoice (< 400 EUR without NIF)

When creating a correction invoice, Frihet assigns R1 by default. You can change the type in the form if another case applies.

Correction Method

Frihet allows two methods:

Method	Code	Description
By substitution	S	You cancel the original invoice and replace it. Lines are pre-filled with negative amounts.
By differences	I	You only issue the difference between the original invoice and the correction.

Select the method when creating the correction invoice. The substitution method is the most common for returns and complete cancellations.

Link to the Original Invoice

Each correction invoice is linked to the original invoice bidirectionally:

• The correction invoice shows a reference to the original invoice (number and date)
• The original invoice shows an indicator that it has been corrected
• In the invoice list, correction invoices are identified with a visual label

Reason for Correction

When creating a correction invoice, it is mandatory to indicate the reason (text field). This reason appears in the PDF and in the register book.

Correction by Difference (Due to Error)

Used when you made an error in the original invoice:

1. You issue a correction invoice for the difference (method I)
2. The client only sees one correction invoice

Example:

Factura original: €1,000 (error de cálculo)
Debía ser: €950
Rectificativa (I): -€50 (por error de cálculo)

Full Correction (Cancellation)

Used to completely cancel an invoice:

1. You create a correction invoice with all negative lines (method S)
2. The net effect is €0
3. Then you create a new correct invoice

Example:

Factura original F-2026-0050: €1,000 (cliente equivocado)
Rectificativa R-2026-001 (S): -€1,000
Factura nueva F-2026-0051: €1,000 (cliente correcto)

Correction Invoice for Return

Used when a client returns products/services:

1. You create a correction invoice for the returned items
2. The client receives a refund or credit

Example:

Factura original F-2026-0045:
  - 10 camisetas × €25 = €250

Cliente devuelve 3 camisetas:
Rectificativa R-2026-002 (S):
  - Camisetas devueltas: -3 × €25 = -€75

Fiscal Registration

When you create a correction invoice, Frihet automatically:

1. Links it to the original bidirectionally
2. Registers the legal type (R1-R5) and the method (S/I)
3. Calculates the hash of the VeriFactu chain (see VeriFactu)
4. Adjusts the VAT (negative taxes in the record)
5. Appears in the register book with all correction information

Important: Do not mark the original invoice as "Canceled" if you create a correction invoice. The correction invoice is the official correction document.

Statuses of a Correction Invoice

Exactly the same as a regular invoice:

• Draft — Not sent, editable
• Sent — Sent to client, registered in VeriFactu chain
• Paid — If it includes a discount and the client accepts it
• Overdue — If it is for a refund and days pass
• Canceled — If you decided not to use it

Difference: Correction Invoice vs. Cancel Invoice

Action	When	Result
Create correction invoice	You need an official record of correction	Two documents: original + correction invoice. Both in VeriFactu chain
Mark as Canceled	Invoice should never exist (administrative error)	One canceled document. Does not appear in reports

Tip: Use a correction invoice when you have already sent the invoice to the client. Use "Cancel" if it was an error before sending.

Refunds and Credits

When you create a correction invoice with a negative total, Frihet offers three options:

Option 1: Bank Account Refund

1. The client provides IBAN
2. Frihet (Stripe integration) automatically processes the refund
3. The money arrives in 3-5 banking days
4. Invoices automatically marked as Paid

Option 2: Account Credit

1. The money is not refunded
2. A "credit balance" is created in the client's account
3. On the next invoice, Frihet automatically deducts the credit
4. Client receives invoice for the difference

Example:

Rectificativa: -€100 (crédito)
Factura siguiente: €500
Factura neta: €400 (Frihet resta el crédito)

Option 3: Wait for Client Instructions

1. You send the correction invoice
2. Frihet remains in "Pending" status
3. Client contacts to decide on refund or credit

Searching for Correction Invoices

Go to Invoicing → Correction Invoices to:

• See all correction invoices separately (if you prefer)
• Or view within Invoices with the filter "Include correction invoices"

You can filter by:

• Status (Sent, Paid, etc.)
• Client
• Date range
• Original invoice they correct

Reports

Correction invoices are shown as:

• Negative income in the period they were generated
• Income adjustments in fiscal reports
• VAT deductions (negative taxes)

If you have many correction invoices, analyze why:

• Frequent invoicing errors?
• Clients who return a lot?
• Pricing errors?

Step-by-Step Example

Scenario: Service Return

Original Invoice (February 15):

F-2026-0099
Cliente: Acme Corp
  - Consultoría (20 horas × €100): €2,000
  - IVA 21%: €420
Total: €2,420

Client uses 15 hours and cancels contract:

Steps:

1. Open invoice F-2026-0099
2. Click on Create correction invoice
3. Frihet creates:

R-2026-003
Cliente: Acme Corp
  - Consultoría (devolución): -5 × €100 = -€500
  - IVA 21%: -€105
Total: -€605

4. Send by email to the client
5. Client chooses: "Refund"
6. Frihet automatically processes the refund

Result in reports:

• Consulting income: €2,000 - €500 = €1,500
• VAT collected: €420 - €105 = €315
• Refunds processed: €605

Recurring Correction Invoices

If you have recurring invoices and need to correct:

1. The correction invoice affects only that specific issuance, not the recurrence
2. The next issuance will be normal (without reduction)
3. Useful for one-time discounts or monthly corrections

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