Writing off sales taxes while paying an invoice

Use Customer Cash Receipt Entry to write off sales tax while an invoice is being paid. For example, you have processed an invoice for a customer, and the invoice incorrectly included tax; the customer sends you a check for the total minus the total tax. Use this function to indicate that the invoice is paid-in-full without the tax, which you then write off. You must have correct security in SA Operator Setup to write off cash receipts.

Note:  If you use Sovos GTD, or AvaTax, or Vertex Cloud, instead of writing off the sales tax, you must use a correction.

See Correcting invoices where the incorrect exemption certificate was applied.

  1. Select Customer > Entry > Cash Receipts.
  2. Click OK to open a journal.
  3. Select the Payment transaction type.
  4. In Check #, specify the customer's check number.
  5. In Amount, specify the amount of the check.
  6. Click Next.
  7. Select the Customer type.
  8. Specify the customer number.
  9. Click Next.
  10. In the grid, select the invoice to be written off. The invoice amount shows both the invoice total and the taxes.
  11. Click Paid In Full, or if the amount available is zero (Avail: 0.00), select the check box in the Paid In Full column in the grid manually.
  12. Press Tab.
  13. In the Apply Amount field, specify the invoice amount without tax (invoice total - total taxes = Apply Amount).
  14. Press Tab.
  15. In the Write Off Distribution window, specify a write off GL account in Account.
  16. In the grid, select the invoice.
  17. Click Writeoff Tax.
  18. Verify the accounts, and the click Done.
  19. Click Save.
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