Why isn't tax applied to entries for manually issuing store credit in Xero?


Latest update: - Lucia Palozzi

Setup

  • Vend for Mac or PC
  • Xero integration

Answer

When store credit is manually issued, tax will not be applied to this entry in Xero. This is because this is not a true payment, rather it is credit issued to a customer to be redeemed at a later time.