How To Issue a Sales Tax Only Credit Memo in SAP Business One

Published on 19th July, 2017 in SAP Business One by Andrea Vermurlen

In SAP Business One, versions 9.0 and greater there is functionality that allows users to create an A/R credit memo for sales taxes only.

Scenario:  Your business has charged a customer for goods sold along with the associated sales tax.  Later, the customer produces documentation showing their tax exemption status.  You now must credit the sales tax only back to the customer.

How To Issue a Sales Tax Only Credit Memo

Create an A/R Credit memo document.  Apply the appropriate customer.  (For a tax credit memo only, make sure the “Tax Only” column is displayed in the form settings.) In the line item, enter the Item, Quantity, unit price, tax code and make sure the Tax Only checkbox is selected.  Add the document.

See below for Item Credit and Service Credit memo.

Item Credit Memo

SAP Business One A/R Credit Memo Sales Tax Display full image

Service Credit Memo

Create an A/R Credit memo document.  Apply the appropriate customer.  (For a tax credit memo only, make sure the “Tax Only” column is displayed in the form settings.) In the line item, enter the GL Account, tax code, Total and make sure the Tax Only checkbox is selected.  Add the document.

SAP Business One A/R Credit Memo Sales Tax Display full image

Outcome of the A/R Tax Only Credit Memo

By running the sales, tax report you can see that the credit of the tax amount has been applied.

SAP Business One tax juristiction report Display full image

Aether Consulting is an SAP Partner for SAP Business One.  We sell, install, implement, train and support SAP Business One.  Thanks, Kimberly Barnes for contributing this article!

Andrea Vermurlen, Marketing & Sales, Aether Consulting

Andrea handles marketing and sales for Aether Consulting.