video1.0<iframe src="https://www.loom.com/embed/289e328522404d0f8e5b976e1bad14f0" frameborder="0" width="1294" height="970" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>9701294Loomhttps://www.loom.com9701294https://cdn.loom.com/sessions/thumbnails/289e328522404d0f8e5b976e1bad14f0-85debf806ed76386.gif200.892This Loom explains that users can now create invoice-linked credit memos even when automated sales tax is enabled. Previously, automated sales tax prevented creating credit memos against finalized invoices, creating a gap for adjusting balances, tax records, and reporting accurately. In the updated flow, users select an invoice and choose Create Credit Memo, where billing details and line items are pre-populated and only line item edits are allowed. For partial credits, tax reversal is handled automatically in the background by prorating tax based on credited line items, capped at the original tax liability, with no tax rate column shown. Users can then apply the credit to the original invoice or contacts balance, and the reversal occurs when the credit is created.