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Question: how do you guys do your receipt/books for a refund with restocking on a local sale.
Example:
I sell gun to Joe Bob for $100 + tax and fees ($100 + $9 tax + $25 background)
I create an invoice for the above and the $25 goes to a liability account (not worried), $9 goes to my tax account
Joe Bob Fails Background
-- What I have been doing is refunding $75+tax (6.75) or 81.75
That means i have an extra 2.25 in taxes that I will then in theory charge for again when I sell the same gun for $100
What am I doing wrong with how I should be doing these refunds when tax is involved? Should I be backing out the whole invoice as a credit and then creating a new invoice @ 75% + tax + fee?
how do you guys handle or do your whizbang POS systems do it for you?
Example:
I sell gun to Joe Bob for $100 + tax and fees ($100 + $9 tax + $25 background)
I create an invoice for the above and the $25 goes to a liability account (not worried), $9 goes to my tax account
Joe Bob Fails Background
-- What I have been doing is refunding $75+tax (6.75) or 81.75
That means i have an extra 2.25 in taxes that I will then in theory charge for again when I sell the same gun for $100
What am I doing wrong with how I should be doing these refunds when tax is involved? Should I be backing out the whole invoice as a credit and then creating a new invoice @ 75% + tax + fee?
how do you guys handle or do your whizbang POS systems do it for you?
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