How to Refund Sales Tax in Sage 100

How to refund or adjust only the sales tax on an Accounts Receivable Invoice.

  1. Open Accounts Receivable / Main / Invoice Data Entry
  2. Create a new invoice for the same customer from the invoice to be adjusted
  3. 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
  4. 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)
  5. Post the Sales Journal
  6. Open Accounts Receivable / Main / Cash Receipts Entry
  7. 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-

  1. Open Sales Order / Main / Invoice Data Entry
  2. Select Credit Memo as the Invoice Type and then complete the Header and Address panels
  3. On the Lines panel, enter any inventory item making it taxable if it is not already by selecting a taxable Tax Class
  4. Enter a Comment line (/C) to indicate what the credit memo is crediting (optional)
  5. Click over to the ‘Totals’ panel and then click back to the ‘Lines’ panel
  6. Delete the inventory item leaving only the comment
  7. Click back to the ‘Totals’ panel and then click ‘Tax Detail’
  8. Enter the sales tax amount to credit (using positive numbers) split by Tax Code if applicable. Click ‘Accept’
  9. Verify the Credit Memo totals are correct (keep in mind that the total will be a positive number)
  10. Print and post the Sales Journal.


If necessary, seek the assistance of Acute Data Systems to help provide assistance with this process.