Credit Memos with Sales Taxes: Generated Transactions
When releasing a credit memo with a sales tax, the system records tax amounts to the GL account specified for a particular tax on the GL Accounts tab of the Taxes (TX205000) form, and creates a GL batch shown in the following table.
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable account | 00.00 | Amount + tax amount |
| Sales account (Income account) | Amount | 00.00 |
| Tax Payable account | Tax amount | 00.00 |