Tax on freight in Sales order

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Posted on by babubaskaran@outloo...

Dear All,

I have made the Freight as taxable on sales order processing setup. And when I enter sales order and enter the freight the tax is not calculating, however when I enter invoice the tax is calculated. Am I missing any setup which stops tax calculation of freight on order level. Or is this standard behavior of GP not to calculate tax on freight at order level.

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Tim Wappat 5,711 on at

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You should be getting taxation if setup correctly.

Check how the freight is taxed, by clicking the right arrow icon -> to the right of the freight amount.

The in our case we attach the tax to the debtor so depending upon the country to which the order is shipped, we get different tax rates. In example below UK VAT at 20% is applied from the Ship to Tax Schedule ID in the Debtor Detail Entry window of the sales order. I don't know your setup but perhaps the screen shots will help point you in the correct places.

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babubaskaran@outloo... 12 on at

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Dear Tim,

That's excellent piece of information and thanks for sharing it. I thought the sales order processing setup freight tax id will populate tax on sales order but its doesn't do at sales order level but invoice level. The following is the changes I made on sales order processing - Tax options - Freight - Base on Debtors. Once I done this and Debtor has correct tax ID, tax is getting calculated for freight on Sales order. Thanks again Tim.

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