Reverse tax on a sales order invoice

Question

We created an invoice through sales order and charged tax. The customer just sent us a payment along with a sales exemption form. Now I need to reverse the sales tax on the invoice. How do I do this?

BigLouie · Accepted Answer

Credit a credit memo, add a misc charge line that is nontaxable and then a misc charge line for the same amount but negative but taxable. This way you will only see a negative taxable amount and the lines will show a zero (0) total

Kevin M · Answer

It depends on the transaction trail you want to leave behind. Two thoughts: 
 
 The "best" way is to credit the original invoice, then re-create it properly. 
 Or add a GL line to the Cash Receipts Entry to write off the value (with the GL account to use chosen by your accountant).

Sage 100

Reverse tax on a sales order invoice

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