Overview

When invoicing an opportunity, there could be a scenario where your customer was charged sales tax by mistake. This article will describe the steps to credit only the sales tax from the invoice without having to make opportunity changes.


Crediting Sales Tax

  • Find the invoice by searching the invoices list by invoice number or property name from the Invoices tab

  • Click on the invoice. Make sure to note or record the opportunity number, sale amount, and taxable amount to input in the applicable fields on the next screen.

  • Click the More menu in the upper right and click Add Credit Memo.

  • The Add Credit Memo box will appear.

  1. Select the Division for which the credit should be applied.

  2. Since only sales tax is being credited, enter $0.00 for the Sale Amount.

  3. Select the date the credit is being applied in the Credit Date field.

  4. Because 100% of the Opportunity is taxable, enter the full invoiced opportunity amount in the Taxable Amount field.

📌Note: Depending on local sales tax rules, the full sale amount may not always be the taxable amount. Example: An Opportunity that has $100 in labor and $200 in material will only have tax on materials. The cost of the materials, $200, would be entered in the taxable amount and not the total of $300.

5. The Tax Amount field will calculate automatically using the dollar value in the taxable amount and the assigned tax jurisdiction on the property.

Once the information entered is verified, click Apply to create the credit memo.

6. In the Property/Opportunity box, search and select the needed Opportunity Number.

7. Add any notes for reference for your company or other employees.

8. When complete, click Save in the upper right.

Nice work! The credit memo is applied to the invoice when saving. It will display on the Opportunity Transaction report and the Tax Entity report based on credit memo date.

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