Accounts Receivable: credit tax only

Sometimes a customer is charged tax when they should not have been, and you need to credit the sales tax.

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

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

Click the Taxes tab and then uncheck the box next to Calculate Tax.
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 then click the Account/Tax button.
Enter a Revenue account, you can use the original revenue account used on the invoice.
Leave the Amount zero.
Enter the Tax Amount to be credited, this must match the Tax Amount entered on the Taxes tab.
Click Add and Close.

Click the Totals tab and you will see the Document Amount is zero, the Plus Taxes and the Document Total amount equals the tax to be credited.
Click Add and post the batch.