Hello

We have charged GST on an invoice to a customer. The customer has paid the invoice ( but minus the GST ) because they were GST exempt.
How do we correct/reverse this GST charge on the invoice that is still showing as outstanding?

Hi Rosalynn,

Create an adjustment for that customer invoice, where the GL account being adjusted is the tax account. You may want to use a Distribution Code to select the GL tax account so that it goes to your Tax Tracking report, if desired.

If you are using Adagio Receivables 90A, you can see the results of the adjustment on-screen, so you know whether the use of a debit or credit adjustment is going to leave the invoice with the correct balance.

To reduce an invoice balance, use a Debit amount for the adjustment detail.

Thanks! I will try that.