We ran an invoice last week for a customer and assessed sales tax.  They called today with their credit card info which was processed through A/R cash receipts.  We forwarded a copy of the receipt from virtual terminal to the customer.  The customer called back and said by the way we are tax exempt.

I entered a credit memo against the original invoice with two line items both for the total amount from the original invoice.  The credit line was set to taxable, the debit line was set to non-taxable (seems reversed but remember this is on a credit memo).  The resulting balance was a credit amount for the sales tax charged to the customer.  Perfect!  Went into virtual terminal and voided the original charge and ran the card again, again through A/R cash receipts, for the adjusted non-taxable total of $525.46.  I logged into virtual terminal to print the receipt and it shows a taxable sale of $484.30, sales tax of $41.16 for a total of 525.46.

 Has anyone else run into this?  I can't figure out why A/R cash receipts would fabricate amounts prior to sending them to Sage Exchange.

Bill Wall

Controller

Mynatt Truck & Equipment Co.