customer notifies you that they are tax exempt, after they receive an Invoice. This article will address the different ways you can credit your customer for taxes that have been unduly charged on an OE invoice.
There are two different ways of creating a credit note for Tax only.
1-Create an OE credit note against the original invoice.
- Delete all the lines except for one line.
- Make sure the Price adjustment is set to $0.00 so the the Item cost is not effected in IC.
- Select the Item Tax button, and adjust the Tax to credit the PST (or whatever tax is being credited).
- Go to the Totals tab and make sure the amounts are correct and press Post.
2- Create an AR Credit note.
- Open a new AR Invoice entry batch and select the Customer
- Select Summery (not Item)
- In the Document Type field, select Credit Note.
- Enter the original OE invoice number in the apply to document.
- In the grid, click on revenue account and enter the GL account for collecting PST (or whatever tax is being credited).
- Enter the amount in $ that you want to credit.
- Navigate to the tax Tab and set both field to NO TAX.
- Check the total tab to make sure the amount is correct.
- Click on Add.
- The only drawback to this method is that the tax tracking will not be updated.