Proposals · Glossary
What is a void invoice?
A void invoice is an invoice that has been cancelled after it was issued but is kept in the records with its original number and a void status. Voiding says the invoice no longer asks for payment, while preserving the evidence that it existed, so the numbering sequence stays complete.
Mistakes happen: a wrong client, a doubled charge, a job that was cancelled before any work. The question is how to undo the invoice without leaving a hole that an accountant or tax officer later has to explain.
Nuwan Madhusanka · Co-founder
4 min read · Published
| Action | What happens to the original | Use it when |
|---|---|---|
| Void | Stays in the records, marked void, number kept | Issued in error and not paid, such as the wrong client or a duplicate |
| Delete | Removed entirely | Only for a draft that was never sent to anyone |
| Credit note | Stays valid; a separate document reduces it | Part or all of a valid sale is refunded or reduced after issue |
| Replacement invoice | A new number is issued after the void | The details were wrong and the client still owes the corrected amount |
What voiding does and does not do
Voiding stops an invoice from counting as money owed. It does not erase the document. The void invoice still shows its number, date and amount, now marked as cancelled, and it no longer appears in totals of unpaid invoices. That matters because records have to explain every number. The ATO expects businesses to keep records that explain all transactions for five years, and HMRC asks VAT registered businesses to keep their VAT records, including invoices issued, for at least six years. A deleted invoice leaves an unexplained gap; a void one explains itself.
Void or credit note
A void is for an invoice that should never have existed in its current form and has not been paid. A credit note is for a valid sale that later changes: goods returned, a discount agreed after delivery, or a partial refund. The difference matters for tax, because an invoice that reported GST or VAT on a real sale needs an adjustment document, not a quiet cancellation. If the client has already paid, voiding is the wrong tool; issue a credit note and refund, or apply the credit to a later invoice.
When to void
Void an invoice that went to the wrong client, duplicated another, had the wrong amount and was caught before payment, or belonged to a job that was cancelled before any work or deposit. Then, if money is still owed, issue a fresh invoice with a new number and, where it helps, a note such as Replaces INV-0057, voided. Tell the client which invoice to pay and which to ignore, in writing, so their accounts payable team removes the void one from their queue.
Common mistakes
Deleting an issued invoice to make a mistake disappear is the most common error, and it leaves a gap in the sequence. Reusing the voided number for the corrected invoice is the second, because two documents then share one reference. Voiding a paid invoice is the third: the payment is then attached to nothing. The fourth is voiding without telling the client, who may still pay it, leaving a refund to process.
Where it shows up in the product
Invoices in the proposals module carry a status that runs draft, issued, sent, viewed, overdue, paid or void, so a cancelled invoice keeps its INV-0001 style number and shows as void rather than vanishing. Invoices are numbered in sequence, so a replacement takes the next number. Card payments through the pay link go through Stripe Checkout on the owner's connected account, and other payments are marked paid by hand, so check the payment state before you void anything.
Questions people ask
Can you void an invoice that has been paid?
It is not good practice. Once money has been received against an invoice, the sale happened, and the right correction is a credit note plus a refund or a credit applied to a later invoice. Voiding a paid invoice leaves the payment attached to a cancelled document, which makes reconciliation and tax reporting confusing.
Do I need to tell the client an invoice was voided?
Yes. Send a short written note saying which invoice number is void and, if relevant, which new invoice replaces it. Clients with accounts payable systems may already have entered the original, and without the note they could pay it, which leaves you a refund to process and an awkward conversation.
Does a voided invoice affect my BAS or VAT return?
If the invoice was voided before it was ever a real sale, it should not be reported. If GST or VAT was already reported on it in an earlier period, an adjustment is needed. Ask your accountant how your accounting software handles voids across periods, because the answer depends on whether you report on a cash or accruals basis.
Should the replacement invoice use the same date?
Use the date it is issued, and refer to the voided invoice in a note so the history is clear. Keeping the original date can make the new invoice look backdated. If the due date matters to the client, set it from the new issue date, or state the original agreed due date in the payment terms.
How long should voided invoices be kept?
For as long as other business records. In Australia that is generally five years, and HMRC asks VAT registered businesses to keep VAT records for at least six years. Voided invoices are part of that record, because they explain gaps in the numbering and show that a cancelled charge was never collected.
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