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
![](https://tw-desk-files.teamwork.com/i/125236/attachment-inline/107951.20170719142835743.107951.201707191428357431fuzk.png)
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.
![](https://tw-desk-files.teamwork.com/i/125236/attachment-inline/107951.20170719142835750.107951.20170719142835750dlvb2.png)
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.
Sales tax report
![](https://tw-desk-files.teamwork.com/i/125236/attachment-inline/107951.20170719142835776.107951.20170719142835776SqlSv.png)