To my Knowledge Credit notes are used to reverse a sale. usually because of unwanted products or over billing.
Take for instance a customer who is dead or is now nowhere to be found, a credit note will do the job but it usually not the right commercial document for events like that at least in my jurisdiction (I will find out more)
A credit note gets the work done though.
This needs to be done.
Good point, I didn’t consider the report, in my steps.
After I solve my problems i like to share with other users
In my country we usually keep our eyes on the balance to be paid to the tax authority in the accounts for which this method easily takes care of.
And yes after entering the whole amount 117.5 in my case and selecting the tax code it worked perfect as @Brucanna said with Tax liability going back to zero. The net purchases and tax paid on the report is the reversal journal netting the sales and tax collected to zero. I’m confused though @Brucanna why are your figures in negative in the report ?
At least i have solved a problem:slightly_smiling_face: