A credit memo in Netsuite needs to credit back tax only.
- On tax only credit transactions, please 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 form and save.
- Note that you may need to create the credit memo 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 characters (ex. asterisk, quotes, etc.) to "Sales Tax Adjustment". Doing so will cause the sales tax adjustment item to not work.