# 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 | Insolvency proceedings: a court has issued the *auto de declaración de concurso* against the customer |
| **R3** | Art. 80.4 LIVA | Wholly or partly uncollectible debt (non-payment meeting the art. 80.4 conditions) |
| **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

The regulation allows two methods. Frihet issues **by differences (I)**:

| Method | Code | Description | Available |
|--------|--------|-------------|-----------|
| **By differences** | I | You only issue the difference between the original invoice and the correction. | Yes |
| **By substitution** | S | You cancel the original invoice and replace it, restating the whole invoice. | Not yet |

Both options appear when you create the correction invoice, with substitution disabled: it requires the corrected amounts line by line and the editor has no surface for them yet. A correction by differences produces the same economic effect.

### 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](/cumplimiento/libro-registro).

### 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 I, by differences)
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 (I): -€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 (I):
  - 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](/cumplimiento/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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