A later supplier credit can change the back-charge evidence
Investigate later credits or cancellations affecting an invoice relied on to substantiate a builder back-charge, without assuming automatic legal reduction.
Corporate Recovery Partners
01 / 06
The supporting invoice may no longer show the full story
The builder deducted a repair expense from your payment and supplied the contractor's original invoice. You later learn that the contractor issued a credit or cancelled part of that charge. Ask for the updated supporting position. The original document remains relevant history, but it may not explain the amount now being relied on in the deduction.
Record the original invoice reference, the possible credit reference and how the information came to you. Distinguish a confirmed document from an unverified comment. Ask the builder to explain whether the adjustment relates to the same work or a different account issue. Do not assume two similar amounts must concern the same transaction.
Business.gov.au's record-keeping guidance includes invoices and payments. Preserve the original support, any later adjustment and the builder's explanation together. A revised record should not erase the original deduction or your response to it. The file should show what changed and when, allowing the accountant and legal adviser to assess the current claim on an accurate basis.
Imagine the supporting contractor invoice included two visits, but one visit was cancelled and credited later. Ask which visit the back-charge concerns and whether the builder's claimed amount reflects that change. This identifies a factual reconciliation question. It does not establish an automatic entitlement to reduce the deduction without reviewing the contract, circumstances and explanation.
A later credit may affect the amount while leaving responsibility for the remaining work disputed. Record each issue independently. Avoid abandoning a necessary response because you expect the builder to correct its figures voluntarily. Have applicable claim and response dates checked while seeking the updated evidence, and retain a record of the request and reply.
Ask for the original expense, subsequent adjustments and resulting amount now claimed. Provide your supported position through the advised process. The useful outcome is a back-charge discussion based on the current evidence rather than a historical invoice treated as permanently conclusive, with any remaining difference clearly identified instead of buried in a net payment.
