Invoice compliance

Monite allows entities to choose the level of compliance for invoices they create and issue to counterparts. This includes allowing entities to issue invoices in countries that are not explicitly supported by Monite and the ability to edit some information in issued invoices.

Compliance modes

Entity settings include the receivable_edit_flow setting that defines the compliance mode for invoicing. The available modes are compliant (default) and non_compliant. The compliance mode controls how issued invoices are handled.

By default, Monite doesn’t allow modification of issued invoices because this can render the invoice non-compliant, depending on the jurisdiction. However, entities without a compliance obligation can opt to enable editing of issued invoices. To do this, the entity needs to change its receivable_edit_flow setting to non_compliant.

compliant mode

This is the default mode for all entities. In this mode:

• After an invoice is issued, its data - line items, payment terms, counterpart information, etc. - can no longer be edited. Only metadata can be edited in issued invoices.

• When an invoice is canceled, a new credit note is automatically created and sent for the outstanding amount of the invoice.

non_compliant mode

In this mode:

• The entity can fully edit issued invoices, including their line items, entity and counterpart information, payment terms, reminders, and other details. There is no need to create credit notes in order to amend issued invoices.

• When an invoice is canceled, Monite does not create any credit notes for the outstanding invoice amount.