Customer has been invoiced, and when payment is received, tax has been subtracted from the payment, and an exemption certificate is supplied.
Best Practice would be:
*Credit back the customer for the full amount of the invoice (including tax)
*Apply exemption certificate to customer
*Re-invoice the customer, this time without the tax
Considered NOT best practice would be:
*Credit tax only in the admin console
- Login to the admin-console and go to the transactions tab.
- Click new.
- Fill out origin and destination addresses by clicking the orange hyperlinks for each address (located in top third of the page). Fields with an * are required. These include doc code, customer vendor code, and document date. Tax override data is required only if a tax override is being used.
- On the lines tab, click add new line. Line No, Quantity, and Amount, are the only required fields.
- On the first line use positive quantity 1 and the pretax amount of the line. In the tax code field, use NT (non-taxable) Save.
- On line two, use positive quantity and negative line amount. Save.
- Click calculate tax on the left hand side of the page. The positive and negative line amounts cancel out, leaving only the negative tax.
*The end result is a zero pretax amount (and therefore no impact to total sales) and negative tax only.