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Level 3

How to adjust sales tax when an item is returned the following month?

A customer purchases and pays for an item that is taxable this month. I pay the state sales tax and then the customer returns the item and I have to refund the tax to them the next month. Where do I make the adjust for the next months tax report? And how do I adjust the return of the item with the sales tax?

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Best answer 12-10-2018

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Level 15

How to adjust sales tax when an item is returned the following month?

You sell something on a Sales Receipt or Invoice.

You accept the Return by using that same information on a Credit Memo. There is a Refund Icon at the top. You control the Taxable status here, the same as on the sale form. This already reverses everything about the sale, because that is the job of using Credit memo = reverse the sale.

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Highlighted
Level 15

How to adjust sales tax when an item is returned the following month?

You sell something on a Sales Receipt or Invoice.

You accept the Return by using that same information on a Credit Memo. There is a Refund Icon at the top. You control the Taxable status here, the same as on the sale form. This already reverses everything about the sale, because that is the job of using Credit memo = reverse the sale.

View solution in original post

Highlighted
Level 3

How to adjust sales tax when an item is returned the following month?

When I do this does it make the adjustment on the next months state sales tax statement or do I have to run a separate report on return sales taxes?  For example...with my old DOS program...I run a report on this months sales taxes and then a report on any returns that have come in from previous months where I already paid the sales tax to the state. Then I send the accountant a report with the taxes for this month minus the return taxes.
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Anonymous
Not applicable

How to adjust sales tax when an item is returned the following month?

Normally use the date the items are returned for the credit memo.  Then there is no need to run two reports as the return will be included in the current period report.
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Level 3

How to adjust sales tax when an item is returned the following month?

Perfect....thanks so much!
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Level 15

How to adjust sales tax when an item is returned the following month?

"and then a report on any returns that have come in from previous months where I already paid the sales tax to the state. Then I send the accountant a report with the taxes for this month minus the return taxes."

The credit memo takes care of everything for you.


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Level 3

How to adjust sales tax when an item is returned the following month?

Absolutely goes with the way I've been doing it.  DOS to this is a challenge but not impossible. Thank you!
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Anonymous
Not applicable

How to adjust sales tax when an item is returned the following month?

Enter a taxable credit memo when they return the sale.

Highlighted
Level 3

How to adjust sales tax when an item is returned the following month?

Taxable credit memo?  I don't understand?
Highlighted
Anonymous
Not applicable

How to adjust sales tax when an item is returned the following month?

What don't you understand?

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