Sales Tax not calculated for taxable item

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Posted on by Danish Viqar

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Dear All,

I'm getting a problem in tax calculation in sales invoices for items which are marked taxable in item card in inventory module.

I have noticed that tax schedule id is populated in line items window in sales transaction with 0 calculated tax amount.

Please help out and suggest.

Regards

Danish

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Mahmoud Saadi 32,738 on at

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What are the details of your tax schedule ID assigned to this item ?

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L Vail 65,271 on at

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Hi Danish,

In addition to providing the tax schedule detail information, if you open the Sales Item Detail Entry window, does the item's tax schedule show up on the window? Also, do you have a shipping method and tax schedule ID assigned to this line item?

Kind regards,

Leslie

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Heather Roggeveen 9,146 on at

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Hi Danish

I have been doing a bit of this just recently and did have issues if the Tax Schedule assigned to the Customer and the Tax Schedule assigned to the item did not match. This could also have impact for you.

Cheers

Heather

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L Vail 65,271 on at

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Hi Danish,

Heather has the answer I'm betting.

Even though it's marked as taxable, the customer ship to tax schedule ID must contain at least one of the same tax details as the item's tax schedule ID. Using the default GP settings, the system will only calculate tax for those details that match between the customer and the item. For instance:

----------------------- EXAMPLE 1 - NO TAX WILL CALCULATE ------------------------------

Customer Ship To Tax Schedule ID = USASTCITY-6*

Tax details within the USASTCITY-6* tax schedule ID = USASTE+PS6N0, USCITY+PS1N0

Item Tax Schedule ID = WIDGET

Tax details within the WIDGET tax schedule ID = ALABAMA

No tax will calculate because the ALABAMA tax detail is not included within the customers Tax Schedule

----------------------- EXAMPLE 2 - TAX WILL CALCULATE ------------------------------

Customer Ship To Tax Schedule ID = USASTCITY-6*

Tax details within the USASTCITY-6* tax schedule ID = USASTE+PS6N0, USCITY+PS1N0, ALABAMA

Item Tax Schedule ID = WIDGET

Tax details within the WIDGET tax schedule ID = ALABAMA

Tax will calculate because the ALABAMA tax detail is included within the customers Tax Schedule. The tax percentage of the ALABAMA tax detail will apply against the price of the item.

Kind regards,

Leslie

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Danish Viqar 829 on at

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Hi Leslie,

I have checked the steps which you define below and it is now calculating tax on item level but there is a big problem by applying these steps.

When I attached tax detail id of item tax schedule id in customer schedule id then system will calculates twice tax on sales values for both ids which is wrong.

Example:

Suppose there is 2 items in Customer Sales Invoice.One is labour which is taxable item at item level with 18% and another is simple part which is customer taxable with 17%.By applying below steps labour calculation is fine but parts tax calculation is twice one with 17% and another with 18% because we have include item level tax detail id in customer tax schedule id.

Hope you understand my point.I have also tried marked auto specify option in company set-up and then unmarked item level tax details id in customer tax schedule but in this way its not calculating at item level.

Please suggest.

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L Vail 65,271 on at

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Hi Danish,

This makes sense. To overcome this, you need to create a tax detail that is unique to that part. It won't get swept up with the other schedule if you do it this way.

Kind regards,

Leslie

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Danish Viqar 829 on at

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Hi Leslie,

I was already create a unique tax detail to particular part but it is still not calculating unless I add this tax detail to customer tac schedule as suggest before but in that way it will calculate twice tax for item which is customer taxable.

Any idea to solve this problem.

Regards

Danish

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Danish Viqar 829 on at

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Hi Mahmoud,

Waiting for expert advice from your end.

Regards

Danish

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L Vail 65,271 on at

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ok,

I think I've got this. Let's use some examples.

Item A is 'taxable' with detail XYZ at 4%

Item B is 'based on customer'

Customer has two tax details

XYZ at 4%

CDE at 6%

What happens is:

Item A is sold for 1000. Tax of $40 is calculated

Item B is sold for 1000. Tax of $100 is calculated

What you want to happen is:

Item A is sold for 1000. Tax of $40 is calculated

Item B is sold for 1000. Tax of $60 is calculated

Is this accurate?

Kind regards,

Leslie

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Danish Viqar 829 on at

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Hi Leslie,

Yes now you got the point.Great.

I'm stuck with this and think it is a bug.

Regards

Danish

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