3036541 - Cannot Release the Credit Memo Due to Error: Tax Exemption Certificate is not Usable.

You are not able to release a credit memo due to error: tax exemption certificate is not usable.

SAP Business ByDesogm

1. Go to the Customer Invoicing work center.
2. Go to the Invoice Documents view.
3. Find the credit memo in question. click Release button, the error 'tax exemption certificate is not usable' shows up.

Tax exemption certificate can be used on credit memo only if there is no excess credit happening. For example there should be a sale of 100 USD that should happen in the system with tax exemption certificate to apply a tax exemption certificate to a credit memo of -50 USD. In this case the negative line is more means there is excess credit happening which would stop the release of credit memo.

There has to be an higher amount invoiced with the same certificate than credited via credit memo. Since the certificate seems new the amount invoiced with this certificate might be lower than the amount you are trying to credit to the account with this certificate. Thus the error occurs.

You need to remove the tax exemption certificate in this case from the credit memo and release.

Credit Memo; Cannot Release; Tax Exemption Certificate is not Usable. , KBA , AP-TTE-TC , Tax Calculation , Problem