Canceling Tax

There are several ways in which you can cancel tax that has been committed in Avalara from Order and Inventory Management depending on whether the tax was calculated for a sale or a purchase:

• Void the Invoice and Cancel the Tax
• Create a Credit Invoice then calculate, post and commit tax on it
• Cancel Tax on the AP Voucher
• Void the AP Voucher then calculate, post and commit tax on the resulting AP Voucher credit.

Voiding an Invoice and Canceling the Tax

1. Click Void Invoice.
2. Click Yes.
3. Click Cancel Tax.
4. Click Yes.

Creating a Credit Invoice and Calculating the Tax

1. Select the checkboxes of the lines that you want to cancel.
2. Click Credit Invoice Lines.
3. Click Confirm.
4. Return to the Invoice.
5. Select the Credit Invoice Name of the credit invoice you created from the Credit Invoices related list.
6. Click Calculate Tax.
7. Click Post Tax.
8. Click Commit Tax.

Note: To calculate tax on an a credit invoice, that credit invoice must have an export status of "New" and have no export errors on the Export Error field.

Canceling the Tax on an AP Voucher

1. Click Cancel Tax.
2. Click Yes.

Voiding AP Voucher and Calculating Tax on the Resulting AP Voucher Credit

1. Click Void Voucher.
2. Click Yes.
3. Click Calculate Tax.
4. Click Post Tax.
5. Click Commit Tax.