How to Correct an Invoice with Incorrect Tax Charges and Issue a Refund

Problem

An invoice was created with tax charges that should have been non-taxable. A refund needs to be issued for the tax that was incorrectly charged.

Solution

1. Find and go to the invoice.

2. On the invoice screen, click Add adjustment invoice.

3. On the Add a Task screen, add a negative refund task and enter the amount of the tax that was incorrectly charged.

4. Click Save.

5. On the adjustment invoice screen, click Add a payment.

6. On the Add a Payment screen, enter the amount of the tax that was incorrectly charged as a negative amount.

7. On the Type dropdown, select Refund.

8. On the Memo field, enter Refund.

9. Click Save.