“Tax Only Credit Memo”

Added: December 26, 2012 by Mac Nelson

Applies to NAV 2009 R2

Have you ever charged a customer sales tax and then they gave you a tax certificate stating that they were sales tax exempt?  Well, it has probably happened to every one of us.  Follow these quick, easy steps to fix this problem.

The way to create a tax only credit memo in NAV successfully is to reverse the original transaction and re-invoice the item(s) as non-taxable.  You can accomplish this in one posting by performing the following actions:

  • Create a new credit memo
  • Go to Actions | Functions | Get Posted Document Lines to Reverse
  • Select the invoiced items to be reversed
  • Create an additional line for each invoiced item to be reversed. Enter the same information as the above lines, but enter a negative quantity and make sure NONTAXABLE is selected. This will create an invoice for the exact same items as the original invoice, but this time without tax included.
  • Go to Related Information | Credit Memo | Statistics to ensure that the amount of the credit memo equals the tax amount from the original invoice
  • Post the Credit Memo lines