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Avalara Help Center

How can I adjust a credit memo in QuickBooks Online and update tax?

Overview

You created a credit memo in QuickBooks Online and need to make changes to it, but when you make a change no new tax calculation is occurring.

Environment

QuickBooks Online

Resolution

  • Go to Company Settings (https://qbo.intuit.com/app/settings) > Advanced tab:
    • In the Automation section, select "Automatically apply credits"
    • Uncheck the box, so "Automatically apply credits" is Off (this setting is ON by default)
  • Edit any credit memo which needs to be adjusted, and it will be sent to Avalara for tax calculation automatically
    • ​You can change price, item, address, or date, Save, then change it back and Save to trigger tax calculation
  • We suggest that you turn Automatically apply credits back on once adjustments have been made
 
Note: Moving forward you most likely will want to turn Automatically apply credits back On. The setting automatically applies credits to the next invoice you create for the same customer. Most companies turn on this setting because it saves time when working with invoices. If any credit memos need to be adjusted (and have a new tax calculation) in future, you can turn the setting back Off at that time to work with those credit memos.