How do I issue a tax credit to my customer?

You can use either a Misc. A/R Credit Memo or a Sales Order Credit Memo to issue tax credits to your customers. The following example describes how to do this using the Misc. Credit Memo (although, the steps are very similar for Sales Order Credit Memos):


  1. You need to credit Customer ABC for $25 tax
  2. Open Misc. Credit Memo screen
  3. Enter $25 in "Amount" field
  4. Open "Tax" link
  5. Create a new Tax Adjustment for $25
  6. Post Credit Memo
  7. View credit in Tax History report
  8. Later: Apply Credit Memo to Customer open item