An invoice from December was created and I erroneously charged sales tax. The customer paid in February, all but the sales tax.
How do I adjust the sales tax liability to reduce it by the amount of the error and zero out the invoice. Because this crossed the year boundry I cannot simply change the invoice and remove the tax.
TIA
Mark
The correct way to remove sales tax from an invoice from a closed period is to create a credit memo.
Lets say you sold one each item called XYZ on the original invoice coded taxable. You create a credit memo for one each XYZ taxable. You then enter on the next line of the credit memo a -1 each XYZ NON taxable. This resultes in a credit memo for just the sales tax.
Remember, since this is a "Credit memo" you should see a positive number in the balance due of just the sales tax amount and it will adjust your sales tax payable account automatically.
Mary
Forgot to add one more thing - don't forget to apply the credit memo to the invoice to close the invoice.
Mary
