Strange tax calculation issue

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Posted on by meowserm

We have 2 sales orders for the same customer/ship to address. The customer is in Canada so they are subject to GST Tax. The GST tax is calculated for both orders. But on one order the tax is calculated based on the item subtotal and on the other order it is based on the item subtotal AND the freight amount.

The sales tax in the company setup is set to "Use shipping method when selecting Default tax Schedule". So I checked and the ship method on both orders is the same.

Is there something else I can check to see why the tax is only including the freight on SOME but not all orders?

Thank you!

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meowserm 90 on at

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RE: Strange tax calculation issue

will do. Thanks again for the assist!
Redbeard 12,931 on at

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RE: Strange tax calculation issue

You may be right about that, but I do like to solve mysteries. Let me know if you come across an explanation.
meowserm 90 on at

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RE: Strange tax calculation issue

Thank you Redbeard. Yes our settings look exactly as your screenshot. Advanced and then "Base on Customers" for all 3.

I know this seems impossible. The only thing I can think of is they changed the ship method mid-stream for the one order.

Thanks again!
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Redbeard 12,931 on at

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RE: Strange tax calculation issue

It seems as though, given you scenario, this is highly unlikely. The other setting you are looking for is maintained in the Sales > Setup > Sales Order Processing then click the options button. It controls whether or not freight is taxable.