In this scenario, you will learn how to issue a credit for tax that had been mistakenly charged on an invoice.
- Go to the Cash Receipts Posting page as described in How to post cash receipts.
- Right-click an invoice and select Issue Tax Credit.
- On the confirmation message that appears, click OK.
- On the confirmation that the credit was issued, click OK.
- Click Save.
- If no payment has been made at this time, type 0 into the Amount, and then click Save again.
The tax credit will be for the entire taxable amount on the invoice. This feature is available only on invoices where tax was charged.
Optional: Select both the original invoice and the new tax credit. This applies the tax credit balance against the original invoice.
If you have not specified an Amount, a warning appears prompting you to.
Note: This method instantly creates a credit invoice directly to the account. A partial credit (or debit) can also be created from Sales Order Entry: see How to create a new sales order.