Correct a validated e-invoice with a credit note instead of cancelling it
Steps 6 and 7 of cancelling and correcting a validated e-invoice: correct it with a new document that reverses it, because the 72 hours have passed or because your group prefers a credit note. It follows Step 1, where you found out which side of the window you are on, and it is the second of the two routes described in Inside the window you still have a choice. In the running example, GadgetSphere’s RM 12,400 laptop invoice should have been RM 9,920, so the difference is RM 2,480 (Meet GadgetSphere). Bring your accountant in before you raise anything: a credit note changes your reported figures (Before you start).
- Step 6: issue a credit note instead.
- Step 7: point the credit note at an original that is actually valid.
Step 6: Past 72 hours — issue a credit note instead
Outcome: LHDN’s records are corrected by a new document rather than by removing the old one.
My E-Invoice Admin Applet → Cancellation → Rejection Requests, or Sales → Internal Sales Credit Note Applet
There is no cancellation past the window. What you do instead is a new document that reverses the wrong one, referencing the LHDN identifier of the e-invoice that was wrong. Once it is validated, LHDN’s records net out correctly even though the original e-invoice is still there.
You have two ways to raise it. If a rejection request exists — yours or the buyer’s — open it: once 72 hours have passed, the processing-logic list on that request collapses to a single choice, new reversal document, and processing it builds the reversing document for you (a sales return for an invoice or cash bill, a credit note for a debit note), finalises it, and creates its e-invoice, all without touching the original. Otherwise raise the credit note by hand for the difference (or the whole amount) in the Sales Credit Note applet. Either way, check the new document’s e-invoice reference before it is submitted — Step 7 is where a reversing document goes wrong.
The two are not the same size. New reversal document copies every line of the original, at the original’s transaction date: for GadgetSphere’s laptop invoice it raises a sales return for the full RM 12,400, dated the day of the sale, and you then raise a fresh RM 9,920 invoice. A credit note you raise yourself can be for RM 2,480 and carry today’s date. If the original’s month is already closed or reported, that difference is the one your accountant will care about.
For a consolidated e-invoice, the buyer on that credit note is General Public, exactly as it was on the consolidated e-invoice itself.
Step 7: Point the credit note at an original that is actually valid
Outcome: the credit note is accepted first time instead of being rejected for its reference.
A credit note is rejected if the e-invoice it references is no longer the live one. The classic case: the original was rejected as Invalid, somebody fixed and resubmitted it, and it came back with a new LHDN identifier — but the credit note is still pointing at the dead one. You will see one of two errors:
- Referenced document status (
DR303) — the referenced e-invoice is not in a state that can be referenced. - Buyer mismatch (
DR308) — the buyer on the credit note is not the same buyer as on the referenced e-invoice. Matching the reference number is not enough; the identity has to match too.
Two ways out, both fine:
- Update the credit note’s original-invoice reference to the currently valid e-invoice, then Save and Resubmit.
- Clear the reference fields entirely and submit the credit note without a reference.
What success looks like for this part
The original e-invoice still reads Valid, and the document that reverses it (the sales return new reversal document built, or the credit note you raised) is validated at LHDN, either referencing the e-invoice that is currently Valid and naming exactly the same buyer, or carrying no reference. When you are done, run the whole task’s success check.
Common mistakes in this part
| Mistake | What you see | Fix |
|---|---|---|
| Crediting a note against a superseded original | DR303 or DR308 on an otherwise clean credit note | Point at the currently valid e-invoice, or clear the reference and submit without one |
The mistakes that span the whole task are on the front page.
Related documentation
- Cancelling and Correcting a Validated E-Invoice: the whole task, with its success check.
- Sales Credit Note Applet: where the corrective document is raised.
- Validation Rules & Troubleshooting: why the e-invoice was wrong in the first place.