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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Company Setup > Pur...
Microsoft Dynamics GP (Archived)

Company Setup > Purchase Tax Schedule

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Posted on by Community Member Microsoft Employee

GP10. On the company setup main window there are 2 tax schedule fields. Is Purchase tax schedule used when purchasing inventory via POP so if I resell it should be set to a purchase exempt type schedule or is it used when I purchase consumable items?  If consumable, the tax paid is included in the cost of the items unless there are many items purchased together in which case I don’t want to itemize the tax per item so just post the tax amount to a sales tax paid expense account.

Thanks!
G

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Company Setup > Purchase Tax Schedule

    I understand how the shipping method relates to sales tax.  My question is, regarding the PURCHASE tax schedule on the company setup..  When a business purchases items they fall into 2 main categories: resellable items, and non-resellable items.  Therefore, the tax schedule can be DIFFERENT based on the type of purchase.  I’m asking how the default Purchase tax schedule on the company setup is used?  Is it used on ALL purchases, in which case I’ll have to change the schedule based on the type of items purchased: reseallable invoices will be assigned a TAXEXEMPT schedule and a non-resellable items a tax schedule which does calculate tax.

  • Suggested answer
    Mahmoud Saadi Profile Picture
    Mahmoud Saadi 32,738 on at
    RE: Company Setup > Purchase Tax Schedule

    The sales and Purchase Tax Schedules may appear as default in your transactions (Sales and Purchasing accordingly) based on the shipping method type (Pickup or Delivery).

    Go to Dynamics GP > Tools > Setup > Company > Shipping Method. When defining the shipping method, it could have one of two Shipping Types as mentioned above. The type determines which tax schedule appear as the default schedule for transaction.

    One more point to be considered on the Company Setup Window, Click on Options, you will find an option "Use Shipping Method when Selecting Default Tax Schedule". If this is checked, then the shipping method will determine which tax schedule to default; 

    I would highly recommend going through the Company Setup Procedure (Chapter 4) on the company series, in order to understand the different aspects of the company setup window.

    Hope this helps, 

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