A credit memo or cash refund in NetSuite needs to credit back tax only.
Currently, Avalara supports tax-only credit for Credit Memo's and Cash Refunds.
- On tax-only credit transactions, enter the line item as such:
- The only item on the credit must be "Sales Tax Adjustment", with a rate and amount of 0.
- The Tax Credit field just above the lines should be populated with the tax amount that is to be credited.
- When you enter the Tax Credit amount, it must be a positive number. Once the transaction is sent to AvaTax it will show as a negative amount.
- Fill out any other required fields for your Credit Memo or Cash Refund form and select Save.
- Note that you may need to create the credit memo or cash refund separately, as opposed to creating it directly from the invoice.
Note: The sales tax adjustment item needs to be set up as a non-inventory item for this to work. Also, do not add extra wording and/or characters (ex. asterisk, quotes, etc.) to "Sales Tax Adjustment". Doing so will cause the sales tax adjustment item to not work.