I accidentally used an incorrect tax code while processing an invoice. The cheque has already been processed. Is it still possible to correct the tax code?
Yes, a correction is possible when an incorrect tax code has been used, in any transaction, even after it has already been processed. You’ll need to process a journal entry to credit the incorrect tax code and debit the correct tax code. Please see the example below.
For detailed instructions on how to create a journal entry, please refer to the “Journal Entry Create” quick reference guide (QRG):
The following illustrates an example of a document correcting an incorrect tax code:
Original transaction containing the incorrect tax code:
Journal Entry required to correct the tax code/amounts:
Impact of the tax recalculations on the $1150.00 example above: