In general, you should create tax-only credits as a last resort, since they often cause discrepancies or inaccuracies on tax returns. Sometimes, however, you might not be able to edit the transactions you need to change—like if they're used in a tax return, for example. In this case, add or import a tax-only credit to your transactions in AvaTax.
Before you begin
If you're importing these transactions, download the transaction import toolkit.
To manually add a credit memo:
- In AvaTax, go to Transactions > Transactions and then select Add Transaction.
- Fill out the basic transaction information. If the credit should apply to the current term, use today’s date.
- Select Save and Add Line Detail.
- Select Add a Line Item and then enter a Quantity of 1 and a Total Amount of 0.
- Override the tax amount:
- Select Additional Information and Tax Overrides, and under Advanced Tax Handling, choose Override the Tax Amount.
- Under Override Type, select Tax Amount.
- For Tax Amount, enter a negative number equal to the value of the credit, and then enter a reason for the override.
- Click Save Line Item.
- Select Calculate Tax to make sure all required fields are filled out.
- Select Save and then select Yes, Save as Committed.
To import a credit memo, follow the instructions for importing transactions, but pay special attention to the following columns:
- DocStatus (A) should be set to 2.
- DocType (C) should be set to 5.
- Amount (N) should be set to 0.
- TotalTax (AP) should have a negative value.