Correcting invoices where the incorrect exemption certificate was applied

If you are using the Tax Interface, these instructions apply to orders that have been invoice processed. You may have incorrect tax amounts due to improper Geo code, or if incorrect exemption certificate was applied. Before you begin, verify all necessary records are set up in Distribution SX.e.

See Tax adjustment prerequisites.

  1. Select Sales > Entry > Order.
  2. On the Initiate window, select the Correction order type.
  3. Complete the information on Initiate window and click Next.
  4. In the Correction window, specify the Return/Adjust Reason for the tax correction.
  5. Specify the invoice number to which this return applies.
    Note: Linking the correction to the original invoice enables the Tax Interface to access the tax rates in effect on the invoice date. If you do not specify an invoice number at the order or line level, the current date is passed to the Tax Interface, and the current tax rate is used.
  6. Clear the Use Step Data check box.
    Note: Leave this option blank unless you are entering a Correction order to reverse taxes that were charged to an exempt customer.
  7. Click OK.
  8. Click Continue.
  9. In Select Products - Add Line Item section, specify the first line item with these values:
    Product
    Specify the Tax Adjustment labor product.
    Quantity
    Specify -1 [negative one].
    Price
    Specify the total gross amount of the original sales order(s) to be corrected [the amount before taxes].
    Tax Adjustment
    When selected, this option indicates that the labor product is being used to correct the taxes on a previous invoice. This option is available only if the order is a Correction (CR) type and the product is a labor item. When you create a Correction (CR) order type for a Labor product, the field is enterable. This signals the system to load the Ship From, Ship To, Point of Order Origin (POO), and Point of Order Acceptance (POA) addresses from the original order onto the CR order. This enables the Tax Interface to calculate taxes at the same rate as the original invoiced order.
  10. Click Add.
  11. Select the Review Taxes and Totals view.
  12. Verify that the Taxable check box is selected.
  13. On the Select Products view, in the Add Line Item section, specify a second line with these values:
    Product
    Specify the Tax Adjustment labor product.
    Quantity
    Specify –1 or negative one.
    Price
    Specify the total gross amount of the original sales orders to be corrected [the amount before taxes].
  14. Select the Tax Adjustment field
  15. Click Add.
  16. In the Line Items section, expand the line you created.
  17. On the Extended view, clear the Taxable check box.
  18. Click Save to complete the order.
  19. Run Sales Entry Invoice Processing Report to process the CR orders. This posts the debit and credit to the customer’s account and generates an invoice that is submitted to the customer.
    Note: To invoice process the order before your normal overnight batch process, contact your system administrator to request a one-time processing of these CR orders. The system administrator can also suspend printing of the invoice if you do not want the customer to receive an invoice.
  20. After the CR orders have been invoice processed, select Customer > Entry > Cash Receipts.
  21. Click OK to open a journal for the current date and posting period.
  22. Select Apply Credits.
  23. Click Continue.
  24. Select Customer and specify the customer number.
  25. Click Continue.
  26. In the grid, select the Miscellaneous Credit (MC) created by the first CR order.
  27. Apply this credit to the original invoice that was charged the incorrect amount of taxes or should be exempt from tax.
  28. Select the debit transaction created by the second CR order and apply it in the same manner.
  29. When you are finished and the proof is zero, click Save.
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