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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Sales tax at item level
Microsoft Dynamics GP (Archived)

Sales tax at item level

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Posted on by rajaa_29 35

We use the Purchase order system for paying invoices on GP 2015. Some of our invoices might have have several lines of items that have to be matched and might have items for different departments. We want to allocate the taxes at the line item level and have that reflected in the cost of the item i.e. if there are 10 lines and the tax is $100 each line should add an additional $10 on top of the item cost(weighted based on the value of the item).

Currently tax is being allocated to the first item on the PO.

How do we make it possible to allocate tax to individual lines when the purchase order is created?

Thank you in advance.

Hiren

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  • Richard Wheeler Profile Picture
    Richard Wheeler 75,730 on at
    RE: Sales tax at item level

    Sounds like CBA is not setup correctly. There is a screen where you set the A accounts and then the corresponding C account. I will get back later today and let you know the path to that screen.

  • rajaa_29 Profile Picture
    rajaa_29 35 on at
    RE: Sales tax at item level

    5773.Capture2.JPG5773.Capture2.JPG

    Purchasing currently uses the screen( on the left) to add taxes to the whole transaction. There is an option to add taxes at the line level using the screen on the right but this would take more time as one PO might have several lines( several departments as well)

    Is there an easier way to add taxes based on whether the item on the item master is taxable or not?

    The screen on the left calculates tax on all items on the PO, whether they are taxable or not.

    Thanks.

    Hiren

  • rajaa_29 Profile Picture
    rajaa_29 35 on at
    RE: Sales tax at item level

    Thank you Richard. I have been testing this in the "TEST" database. Here is what I have noticed so far.

    1) Purchasing personnel add taxes to the PO when PO is created at the "Total" Level. Purchase items are created as either taxable or non-taxable.

    2) Taxes are not flowing to the invoice when an invoice is processed. We have the "AIM" customization where purchasing uses the "A" accounts and those amounts are converted to "C" or cash basis when processed.

    3) The payables clerk has to enter taxes to the individual line item( on the "C" accounts)

    4) Taxes are not flowing from the "A" accounts to the "C" accounts for some reason.

    5) Payables clerk might have allocated sales tax incorrectly sometimes due to high volume.

    Is there somewhere in the set up that this can be changed where taxes come to the "C" accounts from the "A" accounts automatically so that the AP clerk does not have to manually enter them?

    Is this something that can be done from within GP or do I need to do it in SQL?

    Thanks.

    Hiren

  • Richard Wheeler Profile Picture
    Richard Wheeler 75,730 on at
    RE: Sales tax at item level

    CBA from AIM would not cause this. I have never seen sales tax accumulate only on the first line. Are you sure the amount you are seeing is the sales tax on all the lines?

  • rajaa_29 Profile Picture
    rajaa_29 35 on at
    RE: Sales tax at item level

    Yes, we do have cash basis customization via "AIM".   Would "Landed Cost" work in this case?

  • Richard Wheeler Profile Picture
    Richard Wheeler 75,730 on at
    RE: Sales tax at item level

    GP does not allocate sales tax only on the first line of a purchase order. The only way this would happen would be if you had some customization. How are your sales taxes setup, by item or by vendor? If you look at the detail of each item you will see the sales tax charged per line. If you do indeed only see sales tax on only the first line I would like to see your DYNAMICS.SET file also look in your addins folder for any customizations.

  • Suggested answer
    twelvestrikes Profile Picture
    twelvestrikes 3,657 on at
    RE: Sales tax at item level

    Hi Hiren

    I would setup a landed cost schedule for this and attach the landed cost to the PO to account for the taxes that should be charged to increase the price of each line item.

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