Can I cancel a credit note after I've issued one

colinairey

Hi.

Over the past 6 months I've reluctantly issued around 10 credit notes to a costumer after they unreasonably queried invoices we had sent. We were told that if we didn't issue credits we would loose the work. So in order to keep doing work for this company and looking at the bigger picture, we gave them the credits they wanted even tho we knew if we went legal with the queries we would of won but obviously we would of then lost all the work.
At the beginning of this month they started playing games with us again and we couldn't to take it anymore, so refused to give them a credit for a job which amounted to around £200. We also told them that we will no longer be prepared to work for them anymore. They owe us around £2000 but because we have refused to give them a credit for £200, we have been told by their accounts that they are now holding all money owed until we do.

We have written them a letter saying they have 14 days to pay all money owed or court proceedings will start.

My question is.. Are we able to re invoice them for all the credits we have issued over the last 6 months. As the credits where given from us in good will and they have proved that good will doesn't run both ways, are we able to cancel the credit notes and re issue the invoices ?

Thanks

Colin

andybirch

This sounds like extortion. Were there legitimate reasons as to why they requested discounts or just that they no longer wanted to pay the full amount? Have you got any evidence of their requests and reasons?

Is this company solvent, ie is it a case of won't pay not can't pay?

I would suggest if they don't pay within the 14 days given that you issue a new invoice for the discount allowed, stating it's for revoking earlier discounts given for prompt payment. I would then get a court order for the full amount.

I hope it gets resolved.

colinairey

We are a hydrualic company and the company in question is a huge national business, so it is a case of won't pay rather than can't. We received order numbers to carry out the work but when the invoices went to the accounts department, the manger decided he wasn't paying for the work we had done for various laughable reasons but the main bulk of credit was given back because we did 6 inspections on brand new vehicles they had just purchased. We got asked by their transport department to carry out the inspections because they didn't have the relevant paper work from the manufacture (which is quiet common) .. We received order numbers and did the work. When the accounts manager received our invoices, he said that he refused to pay because we should of known that brand new vehicles would already have relevant paperwork and all he needed to do was contact the manufacture and ask for copies. Due to the amount of work we had lined up with this company, i reluctantly gave him credit notes for each invoice because i didn't won't to jeopardise future work. He has since refused to pay 3 more invoices for unreasonable reasons even tho each time we have obtained order numbers from the transport department to carry out the work. Like i said, the credits where given in good will because i was thinking of the bigger picture and didn't mind returning hundreds of pounds if it meant i was going to earn thousands in the long run. However, I've since decided not to do anymore work for them so i would like the credits back.
Hope all that made sense ?

Thanks

Percy1983

When you say you recieved order numbers did you receive orders?

if so they probably state an amount and the service required.

If they order a service then a contract is formed, if you then do the work to said contract they owe you the money.

If then decided to they shouldn't have asked you to do the work its tough if you have already done it.

IronWolf

Can you contact someone higher up the in organisation to try and get it resolved?

Email addresses for CEO's are usually easy to find on the net, I would write to them and explain the situation and that you will soon start legal proceedings.

colinairey

We received an Order Number from which they have written down exactly what job you are going to do or have done depending on wether or not you receive the order before or after you carry out the work.
We have sent the 14 day notice of court proceedings to the man in question and the MD.

I just need to know if by me already agreeing to give them credit notes for each invoice if that then stops me from reissuing the original invoice again ?

I have emails to back up my response to each credit request but then when i have backed down, I haven't suddenly admitted i was wrong, I have just sent an email basically saying, I give up and please find attached your credit note. What I'm worried about is if they have the right not to pay the invoice because I've agreed to credit them back. ??

gb12345

colinairey wrote: »

What I'm worried about is if they have the right not to pay the invoice because I've agreed to credit them back. ??

I'd say you should be asking your solicitor this rather than random people on a forum - especially if you're going to rely on the answers for a court case.

Aquamania

colinairey wrote: »

Hi.

Over the past 6 months I've reluctantly issued around 10 credit notes to a costumer after they unreasonably queried invoices we had sent. We were told that if we didn't issue credits we would loose the work. So in order to keep doing work for this company and looking at the bigger picture, we gave them the credits they wanted even tho we knew if we went legal with the queries we would of won but obviously we would of then lost all the work.
At the beginning of this month they started playing games with us again and we couldn't to take it anymore, so refused to give them a credit for a job which amounted to around £200. We also told them that we will no longer be prepared to work for them anymore. They owe us around £2000 but because we have refused to give them a credit for £200, we have been told by their accounts that they are now holding all money owed until we do.

We have written them a letter saying they have 14 days to pay all money owed or court proceedings will start.

My question is.. Are we able to re invoice them for all the credits we have issued over the last 6 months. As the credits where given from us in good will and they have proved that good will doesn't run both ways, are we able to cancel the credit notes and re issue the invoices ?

Thanks

Colin

On the face of it I would say no.

Even if it is possible, (and ignoring the legal costs you will undoubtedly incur trying to make it stick) it would make you look as bad as the other business.

I would go after the 2G they do owe you. A simple online claim will probably soon see the money winging it's way to you, but even if it does end up in court, you will most probably win (based on your version of events)

Afterall, if they had paid you the £2000 you have invoiced, you wouldn't even be asking the question.

colinairey

Thanks for your advice.

The reason I wanted to reissue the invoices that we had credited them back was obviously because i feel very bitter towards the way are being treated.
We only gave the credits to secure future work so now thats all gone i thought of trying to get it back. I will have a chat with a solicitor about this but it might be best treating it as a bad experience.

Thanks again.

magpiecottage

Get your CCJs then you can post on here that you have obtained them - and who they are against!

colino

First of all, no, you can't rescind credit notes, it's like giving out counterfeit money.
You have to address all the issues in a covering letter, e.g. you don't interfere with their internal management, so if you get a bona fida work instruction with a linked order number, you do the work professionally and bill them for it. Address every discrepancy, give credit where it's due and attach to a statement of the outstanding account with linked previous invoices.
You also have to work out if they are exhausting every subby to get work done for free. What profit are you making working for them if you constantly have to revisit, and credit, paperwork?
Better to be profitable than busy.