on 01-27-2015 4:15 PM
Hi,
I am just checking if there is any way that i can reverse the tax amount ?
Scenario # Invoice is created with wrongly accounted for tax ( the tax certificate for tax exemption was received after invoice - tax-ware)
I could reverse the invoice and regenerate it with correct tax value but our business requirement doesn't allow us to reverse the invoice.
Invoice:
AR 11XXXX - Debit - 200 USD
Revenue 43XXXX - Credit - 150 USD
Tax 23XXXX - Credit - 50 USD
Due to tax exemption this customer should not have been charged tax. Now the business has decided to just refund tax amount from tax account.
Is there any way achieving this requirement ? I am sure that we can't make any direct entries to tax account.
Credit :
Tax 23XXXX Debit ---- 50 USD
AR 11XXXX Credit --- 50 USD
Thank you !
Hi Raju,
Instead of manual posting to tax account, you have to post below accounting entry in FB01.
11 Customer a/c 200 (Select calculate tax check box)
40 Sale revenue A/c 150 (maintain the tax code)
40 Tax payable A/c 50 (system calculate tax automatically and generate this line item)
50 Sale revenue A/c 150 (do not maintain any tax code)
01 Customer A/c 150 (do not select calculate tax check box)
Regards,
Mukthar
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