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What is Debit and Credit Note in Sales Tax Law?
Debit and Credit Note can not represent the tax. Debit and Credit Note represents customer added or deducted balance only due to some business reasons to increase and decrease the customer due amount like wrong calculation, missed item in the invoice, lost interface record or redundant record etc..
The tax can be represented as adjustment to the invoice with the percentage of the tax and hits the required account and approved by the Finance Manager. This is how it should work in Oracle ERP as an example of the business treatment.
REGARDS
IHAB
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