This article explains how credit and debit notes are handled in e-invoicing in Qoyod, their relationship to the original invoices, and Phase 2’s impact on the PDF file format.
When to issue a credit or debit note
- Credit Note: When a customer returns a product, or when reducing the value of a sales invoice after approval.
- Debit Note: When returning a product to a supplier, or when reducing the value of a purchase invoice after approval.
An invoice cannot be edited after it has been approved by the Zakat, Tax and Customs Authority (ZATCA). Notes are the official mechanism to adjust amounts after issuance.
Linking the note to the original invoice
Every note in Qoyod is linked to an original invoice that exists in the system. This link ensures:
- Sequence tracking from invoice to note in the VAT return.
- The customer’s or supplier’s balance updates automatically.
- The document chain matches ZATCA requirements.
Phase 2 and the embedded PDF
- When Phase 2 of e-invoicing is activated, the PDF for a credit or debit note automatically embeds the tax XML file as an attachment inside the file itself (PDF/A-3).
- This ensures the documents match ZATCA requirements during review or audit.
Creating a note
- Open sales invoices (for a credit note) or purchase invoices (for a debit note).
- Click “Credit Notes” or “Debit Notes”.
- Click “Create Note”.
- Choose the original invoice, the product, and the quantity to be returned.
- Fill in the note details and save.
Notes
- Notes in Phase 2 go through the same Clearance or Reporting process as the original invoices, depending on type (B2B or B2C).
- When a note is rejected by ZATCA, the same rejection-handling steps as invoices apply.
