Accounts Payable: credit tax only

Sometimes tax is entered against an AP invoice when it should not have been, and you need to credit the sales tax.

This example shows you how the do a credit note in AP for the tax portion.

Open a new AP invoice batch, enter the vendor number and set Document Type to Credit Note, you can enter an Apply-To Document if you need to.

Click the Taxes tab and change Tax Amount to Enter and Tax Base to Enter.
Enter the tax amount to be credited in the Tax Amount field, leave the Tax Base as zero.
Do not click Calculate Taxes or Distribute Taxes.

Click the Document tab and enter the Document Number (credit note) and Apply-To Document (optional).

Enter the tax amount to be credited in the Document Total field.

Click the Account/Tax button.

Enter the GL Account and leave the Amount zero.

Enter the tax amount to be credited in the Tax Amount field, leave the Tax Base zero.

Click Add/Save and Close.

Click the Totals tab and verify the Taxes and Document Total equal the tax to be credited.

Click Add and Post the batch.