Scenario:  Customer was overcharged Sales Tax and needs to be refunded 

There are a few things that need to be in place:

TAXREFUND part number setup in inventory

The customer's file tax area needs to be left as taxable and under the original tax area until after the refund is done

• The Item Number must be TAX REFUND
• The Memo is a Zero
• The GL# must be your Sales Tax Liability General Ledger Account Number
• The item must be marked as No Tax
  Those four fields are the only fields used and must be filled in correctly as indicated.

Open a new sale to the customer, apply the TAXREFUND part to it the system will prompt for the amount to refund, the original charged amount and the tax amount.  

Refund Amount = negative amount of the tax refund

Previous Sale Amount = negative amout of the original sale, if the Tax Percentage is correct the system will figure the amount properly based on the amount refund

Tax Percentage = the tax percent charged originally

Verify the total, Print and Bill the sale as a Charge to apply the refund to the customer's account as a credit

Note:  if refunding the customer with Cash or crediting their Credit Card leave the tems as CASH and select the appropriate payment option when closing the sale.

Edit the customer's tax area and tax percentage after the refund is issued and note the change in the customer notations.

This refund will be in the current months taxable sales report, reducing the taxable sales amount and the tax liablity amount properly.