Forgiving Taxes After An Underpayment On An Invoice

Task/Problem Overview

This knowledge base article will discuss how to handle if you received an underpayment for an invoice from a customer that doesn’t include the taxes, but are not aware until after you have posted that underpayment, and you must return to Receive Money to “Forgive Taxes”. Please review documentation on “Forgiving Taxes”.

Receiving Money

• Open Receive Money Screen

  

• Search for the customer you are receiving money from and search by Customer by typing it in and hitting Enter or by clicking the binoculars icon next to the customer search window

  

• Once you have entered the proper search criteria to find the single invoice or group of invoices you are going to receive money on you will see them populate in the invoices screen

• At this point, enter the amount of money that you are receiving; assuming the amount is “excluding” taxes, enter that amount. This is assuming that the user does not know that this underpayment is for the tax amount and leaves that as a balance on the Account

  

• Enter the method of payment you are receiving

  

• Enter the date received

  

• Enter the Check No. if applicable (Check No. window will only be present if you select check for payment method)

  

• Enter the deposit account

  

• Select the invoice(s) this payment is being received against by checking the box next to said invoice

  
  • The row will be color-coded green if there are enough undisbursed funds from the Amount window to cover the invoice and pink if it is a partial payment.

• Click Post & New OR Post to finish receiving the payment. Post & New will re-set the Payment Information Filters and Post will just clear the invoice you are paying without clearing the filters. In other words, if you click “Post”, you will stay on the same screen reviewing the remaining outstanding invoices for that customer.

  

Entering an Underpayment

In the case that you enter a payment that doesn’t cover the entire amount of an invoice or invoice(s) but you still want to apply the funds, take the same process described in the Receive Money section above until you actually post the payment

• You will be prompted on how to handle the underpayment

  

• Select the desired radio button to “Leave this as an underpayment”

• Click Accept

  

Forgiving Taxes as an Underpayment

In the case that you have discovered this underpayment is a Forgiving of Taxes situation

Receiving Money

• Open Receive Money Screen

  

• Search for the customer you are receiving money from and search by Customer by typing it in and hitting Enter or by clicking the binoculars icon next to the customer search window

  

• Once you have entered the proper search criteria the invoices where the taxes have been left over as an underpayment

  

• At this point Enter the method of “Underpayment WriteOff”

  

• Enter the date

  

• Select the invoice(s) where the tax is being forgiven.

• Select “Forgive” checkmark

• Click Post & New OR Post to finish receiving the payment. Post & New will re-set the Payment Information Filters and Post will just clear the invoice you are paying without clearing the filters. In other words, if you click “Post”, you will stay on the same screen reviewing the remaining outstanding invoices for that customer.

  

Sales Tax Detail Report

Now let’s take a look at the Sales Tax Detail Report

Reports>> Sale Tax Detail.

Run the report as of today’s transaction, you will see the Tax Forgiven $ in the Tax Forgiven column.

The Taxable Sales after Adjustment are deducted as they were already accounted for when originally paid.