About Applying Payments to Taxes
Taxes applied to AR invoices are automatically paid when applying payments to the invoices.
If you applied taxes to AR invoices, the system applies payment to the tax amount first, then to the invoice total. If the payment does not sufficiently cover the total invoice balance, the tax is still paid first, with the remainder of the payment applied to the invoice total. If you want the entire payment applied to the invoice total, you will need to override the applied tax amount manually.