How to apply sales tax credit memos to PO invoices


Occasionally, a supplier may have been overpaid on sales tax and it may have prompted a sales tax refund (credit memo).


To process this, you may consider just entering a Supplier Invoice. The Supplier Invoice number could reference the original invoice number in some way if a visual tie-back is required. In the top portion of the Supplier Invoice, a negative Tax Amt can be entered. The Net Amt can be left at $0 since we're only working with tax on this topic.


Then, click the 'New' button in the lower portion of the Supplier Invoice screen. This should create a detail line for this. Be aware, it will not automatically fill in the 'Tax Amt' value in the lower-grid. You'll need to manually enter the negative tax value in the 'Tax Amt' field in the lower-grid.


Lastly, make sure the 'Tax Code' in the top portion of the screen looks correct. If so, you can then save the Supplier Invoice (credit memo in this case, since it's a negative value).