Sage 100

Client uses Avalara Cert Capture, Avalara AvaTax (with Sage 100) and the Avalara Tax Return Product. 

Problem:  They are charging customers Sales Tax, and the customer is Tax Except.  Then later, when the customer proves they are "exempt" they are processing the Credit Memo and Re-Billing so the customers short payment of the invoice is addressed.

ISSUE:  When they are doing the Credit Memo, the customer is "already set up as tax exempt", so the Credit Memo is not reversing the tax obligation.  They have tried to manually manipulate the Sales Tax Amount, but the warning mentions that this manual modification is not posted to AvaTax.  They proceed anyway.  The result is the Credit Memo posts to AvaTax Tax Returns as as Exempt Sales, and does not credit the Sales Tax that was paid originally.  They are have credited the customer for the sales tax amount, but have already paid the state and the credit memo is not recognized as a taxable credit memo, and the tax obligation is not reduced.   

The credit memo is the problem.  How can they credit the customer the original invoice and reverse the sales tax obligation if the customer is Tax Exempt?    Looking for a "trick" to credit the invoice at "taxable" when they are Exempt now in Cert Capture.  What am I missing?  

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Madeline Stefanou
RKL eSolutions, LLC
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Can they enter a credit memo for the tax only when it is know the customer is tax exempt but prior to entering the tax exempt information in Sag 100?  For example, customer submits a tax exempt certificate and there is one open invoice that has tax on it.  Before entering the tax exempt information in Sage 100, create a sales order invoice credit memo.  Line item 1 is a positive miscellaneous taxable item (TX) for the original total invoice amount.  Line item 2 is a negative miscellaneous non-taxable item (NT) for the original total invoice amount.  On th eTotals panel, Taxable amount is a positive, Non-Taxable Amount is a negative of the same amount, and the sales tax amount is the total credit memo amount.

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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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Should be original Total Invoice Amount before sales tax.  "Line item 1 is a positive miscellaneous taxable item (TX) for the original total invoice amount.  Line item 2 is a negative miscellaneous non-taxable item (NT) for the original total invoice amount."

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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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Original Message:
Sent: 04-25-2023 13:08
From: Doug Higgs
Subject: AvaTax Credit memo Question

Can they enter a credit memo for the tax only when it is know the customer is tax exempt but prior to entering the tax exempt information in Sag 100?  For example, customer submits a tax exempt certificate and there is one open invoice that has tax on it.  Before entering the tax exempt information in Sage 100, create a sales order invoice credit memo.  Line item 1 is a positive miscellaneous taxable item (TX) for the original total invoice amount.  Line item 2 is a negative miscellaneous non-taxable item (NT) for the original total invoice amount.  On th eTotals panel, Taxable amount is a positive, Non-Taxable Amount is a negative of the same amount, and the sales tax amount is the total credit memo amount.

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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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Maybe create a temporary CustomerNo without the exemption, post the CM there, then merge the temporary customer # into the real one.

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Kevin Moyes
Technical Systems Analyst
Munjal White Consulting Co.
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Use the Entity Use Code field in Lines in versions 2021/22. Prior versions require creating a UDF to capture/send this code. Use code TAXABLE to supersede the exemption.

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Bob Pfahnl
Manager - Silicon Valley
DSD Business Systems
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