Tax was calculated on a transaction that was supposed to be non-taxable in a previous period. Now I need to refund the tax and create a tax credit.
- The recommended best practice is to credit and rebill the transaction in the original period, then amend the return in the original period
- Another option is to create a transaction that is a full return of the original transaction, including tax.
- If there is already an exemption applied to the customer you can override it by using entity use code "Taxable".
- Use either a negative Quantity or Amount as return invoices do not automatically accrue negative liabilities.
- Create a second transaction that has the same sales amount as the first, but tax exempt.
- Make both of these transactions in the current period, not the period which the original transaction was made.
- For information on how to add these transactions directly into the admin console please click Here.
Note: If the tax rate has changed you may need to use a tax date override when entering the transactions.