How do I add a tax only credit in Netsuite?

Overview

A credit memo or cash refund in NetSuite needs to credit back tax only.

Environment

Netsuite Basic

Netsuite OneWorld

Resolution

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.