How to Refund Sales Tax in Sage 100
How to refund or adjust only the sales tax on an Accounts Receivable Invoice.
- Open Accounts Receivable / Main / Invoice Data Entry
- Create a new invoice for the same customer from the invoice to be adjusted
- On the Lines tab, enter the same Sales Codes which generated the original sales tax amount now being adjusted. Enter each Sales Code twice, first as non-taxable (NT) with a positive quantityand the second as taxable (TX) with a negative quantity
- On the Totals tab, the Invoice Total should be only the negative amount of the sales tax (the +/- Sales Codes should offset leaving only a negative tax amount)
- Post the Sales Journal
- Open Accounts Receivable / Main / Cash Receipts Entry
- Process a cash receipt for $0 and apply the credit invoice just created to the original invoice
How to refund or adjust only the sales tax in a Sales Order Credit Memo.
Steps to create a Sales Order Credit Memo for sales tax only-
- Open Sales Order / Main / Invoice Data Entry
- Select Credit Memo as the Invoice Type and then complete the Header and Address panels
- On the Lines panel, enter any inventory item making it taxable if it is not already by selecting a taxable Tax Class
- Enter a Comment line (/C) to indicate what the credit memo is crediting (optional)
- Click over to the ‘Totals’ panel and then click back to the ‘Lines’ panel
- Delete the inventory item leaving only the comment
- Click back to the ‘Totals’ panel and then click ‘Tax Detail’
- Enter the sales tax amount to credit (using positive numbers) split by Tax Code if applicable. Click ‘Accept’
- Verify the Credit Memo totals are correct (keep in mind that the total will be a positive number)
- Print and post the Sales Journal.
If necessary, seek the assistance of Acute Data Systems to help provide assistance with this process.