Enter Tax for Purchase Order Charge Line

Explanation

Sales and use taxes can be specified for individual purchase order charge lines, based on pre-defined tax codes. When specifying tax for purchase order charge lines, you can view, modify, or delete existing tax lines, and create new ones. Default tax information can also be retrieved. Sales taxes entered on purchase orders are considered estimated until invoiced and paid. This activity is also valid when updating sales and use taxes through a purchase order change order.

Prerequisites

• Purchase order or purchase order change order charge lines must have been entered and saved.
• One or more tax codes must have been established in Tax Codes window.
• The Taxable check box in the charge line must have been selected.
• The tax regime on the Company/Invoice/Tax Information tab must be specified as Sales Tax.

System Effects

• The tax code will be retrieved based on the ship-from (Supplier) or ship-to (Company) address for domestic suppliers.
• Tax will be calculated for the purchase order or purchase order change order charge line and the entire purchase order or change order, based on the selected tax code.
• For a company using the VAT tax regime, the tax calculation basis for purchase order or change order line, and the entire purchase order or change order, is based on the Use Price Incl Tax check box on the Purchase Order/Misc Order Info tab.
• The total gross amount and tax amount for the line and entire purchase order will also be calculated.

Purchase Order/Charges
Purchase Order Change Order/Charges
Purchase Order Charge Tax Lines

1. Select the required purchase order or purchase order change order charge line to view tax lines.
2. Right-click, and then click Charge Line Taxes. The Purchase Order Charge Tax Lines or Purchase Order Change Order Charge Tax Lines window opens, displaying any existing tax lines for the order charge.
3. To add a new tax line, click New, and then click List and select a tax code. The default tax percentage for the predefined tax code is displayed.
4. The net amount, tax amount, and gross amount will be displayed, based on the tax values selected.
5. To view the default tax information, if any, click Set To Default.
6. To remove a tax line, select the line, and then click Remove.
7. Click Save to save and close the window. The resulting amounts will be transferred to the purchase order record.