How to Credit the Tax Amount on a Paid Invoice?

To Credit the Tax Amount on a Paid Invoice first of all Pay the Invoice fully.

Now, to show the Refund of the Tax Amount, create a Credit Memo.

Follow the steps below to Create the Credit Memo:


  • Navigate to the Credit Memo module.
  • Select the Customer on the Credit Memo.


  • Add any Taxable Service Item on the Credit Memo and add the Tax to the Item line.
  • Then again add the Service Item with the negative amount so that finally it has the total amount as the tax amount to be credited.


Thus, adding a negative Cost Line can fix the Total amount and the Credit can be created for the Tax Amount.

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