Sales tax not calculating

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On our sales invoices, sales tax is not calculating on all line items. The sales tax schedule appears to be setup with a percentage. This appears to be occurring on recently moved quotes to invoices. Some line items the tax is calculating while others are not. What would be some items I need to verify to ensure sales tax is setup correctly? New user to GP. Thanks.

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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Check to see if the Sales Tax Option is set to Taxable in the Item Maintenance Card.

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Community Member on at

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The items are marked taxable. however when viewing the tax schedules our "tax" schedule is available but not selected on the right under tax schedule maintenance. the middle buttons are not active so I cannot insert the tax schedule. I am assuming the tax schedule must be selected?

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Danish Viqar 829 on at

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Hi Thomas,

You need to check that your item class must be taxable based on customers.Also need to define tax schedule id at customers level.

Regards

Danish

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OK - updated info for this question: Sales tax calculates correctly when the original document is created. However, sometimes, the client changes the ship to address (picks one that already exists). The freight amount changes but the sales tax doesn't. We see that there is another screen to update this but why doesn't the taxable amount which appears at the top of the screen default in the distribution section? The clerk has to type the taxable amount again into the distribution lines. Is this really how it's supposed to work?

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L Vail 65,271 on at

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Hi Micki,

When your client changes the ship to address, this I'm guessing is the culprit. The Freight charges probably stay correct because freight is set up differently due to the fact that some states charge tax on it, and some don't. The sales tax calculation is based on the delivery type of the shipping method. If it's a pick up, it's one rate, if it's a delivery it might very well be another. Look at the shipping method that defaulted and then look at the shipping method your client changed it to, is the shipping type the same on the Shipping Method setup window? Also, address IDs each have their own Shipping Method and Tax Schedule ID, if either is blank, no sales tax will be calculated.

Kind regards,

Leslie

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