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Sales Tax Adjustment after posting Invoice

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Posted on by saurabh bharti

15,039 Moderator

Hi ,

Can anyone help me in understanding on following scenario:

Is there any way we account for Sales tax after posting customer invoice and link to the Invoice?

Thanks in Advance !!!

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Ludwig Reinhard Microsoft Employee on at

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Hi Saurabh,

You can post a credit note and link it to the original invoice for example by entering the original invoice number in a reference field.

Is this what you are looking out for?

Best regards,

Ludwig

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saurabh bharti 15,039 Moderator on at

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Hi Ludwig,

Thank for response.

No, that will reverse the invoice. Scenario is:

Customer posted sales invoice without tax impact with accounting entry:

Customer Debit to Revenue Credit

Now customer wants to adjust tax amount without reversing and reposting the invoice.

Only accounting entry require is:

Customer Debit with tax amount to Sales Tax credit

Is it possible to do?

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Vijay A. Vishwakarma 10 on at

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Hi Saurabh,

Can't we use tax journal to give accounting effect?

I mean tax journal can be used to give necessary effect of Customer account debit and Sales tax account Credit.

Regards,

Vijay A. Vishwakarma

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saurabh bharti 15,039 Moderator on at

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That's true but Tax journal is specific to country, it is available only with GTE like India, Singapore

So, we do not have Tax journal option for rest of the country like USA, Australia...

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André Arnaud de Cal... 301,210 Super User 2025 Season 2 on at

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Hi Saurabh,

It is not possible to add the sales tax after posting the invoice. When the invoice was already sent, then this would be invalid after adding tax. So, like Ludwig mentioned above, the correct way would be crediting the invoice and create a correct new invoice.

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OsmanIstanbul 2,818 on at

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Hi

İf you have posted your invoice via free text invoice, you can use correct invoice functionality. It will create correct invoice and reverse first invoice.

Best refards

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