AP - Tax amount - how to offset this Tax amount

Hi @erin 

I could not see any attachment. I guess you wanted to reverse the tax component on an AP Bill. Here is the option you can explore, you can create a debit adjustment to reverse only Tax component. Here are the steps:

• create a debit adjustment document
• select same tax zone which was selected on AP bill
• enter a detail line with no item selected, select the same tax category as on AP bill detail line
• set the line amount zero, as you want to reverse only tax component of AP bill
• on Tax details tab, enter the tax amount manually (it would reflect correct tax code based on vendor tax zone and detail line tax category)
• once saved, the document will reflect only the tax component of the AP bill that need to be reversed
• on release of the document, it debits AP control and credits tax claimable account (in my test case, its VAT charged on AP bill).
• user can apply debit adjustment to AP bill while making payment

Refer to the screenshots below:

GL Transactions generated on release of debit adjustment

Hope this helps,

Regards,