How Taxes are calculated in Purchase Order Processing

TechKnowledge Content
SUMMARY

This article describes how taxes are calculated in Purchase Order Processing.

MORE INFORMATIONStep 1 Advanced versus Single Schedule

Go to Company Setup Options (Setup - Company - Company - Options). If the Use Shipping Method when Selecting Default Tax Schedule option is marked, the following table will explain which tax schedule will default on a Purchase Order in Purchase Order Entry (Transactions - Purchasing - Purch. Order Entry). If it is not marked, the default tax schedule assigned to the vendor’s purchase address will be the default.

TheTax Calculation option listed in the table below can be found within Purchase Order Processing Setup Options (Setup - Purchasing - Purchase Order Proc. - Options).

Tax Calculation OptionPurchase Order TypeShipping MethodDefault Tax SchedulePrompt Name
AdvancedDrop-shipNot applicableBlankTax Schedule
AdvancedStandardPickupTax schedule assigned to the vendor’s purchase addressPurch Addr Tax Sched
AdvancedStandardNo Shipping MethodTax schedule assigned to the vendor’s purchase addressPurch Addr Tax Sched
AdvancedStandardDeliveryPurchases Tax Schedule assigned in Company Setup(Setup-Company-Company)Company Tax Sched
Single ScheduleNot ApplicableNot Applicable

Tax schedule that is assigned as Single Schedule in Purchase Order Processing Setup Options (Setup-Purchasing-Purchase Order Proc.-Options)

Tax Schedule ID


Step 2 The Item's Purchase Tax Option

In Item Maintenance (Cards -Inventory - Item) look at the Item'sPurchase Tax Option line. The following table will explain which tax schedule will default for the item in Purchasing Item Detail Entry (Transactions - Purchasing - Purchase Order Entry - expansion box to the right of Item)

The tax schedule specified in Item Maintenance (Cards - Inventory - Item is always compared to determine which tax details to use. The item tax schedule that defaults for the item in Purchasing Item Detail Entry (Transactions - Purchasing - Purchase Order Entry - expansion box to the right of Item) is explained below:

ItemDefault tax schedule
Inventoried Item - TaxablePurchase tax schedule assigned to the item inItem Maintenance (Cards - Inventory - Item)
Inventoried Item - Nontaxableblank
Inventoried Item - Based on vendordefault tax schedule assigned to the vendor's purchase address.
Non-inventoried ItemTax schedule assigned to the non-inventoried items in the Purchase Order Processing Setup Options window

Based on Vendor Inventory Item:
If the shipping method that is assigned to the transaction is a PICKUP type, taxes are calculated for each detail in the schedule that is assigned to the purchase address of the vendor. No comparison is made. If the shipping method that is assigned to the transaction is a DELIVERY type, taxes are calculated for each detail in the schedule that is assigned to the default site. No comparison is made.

Step 3 Comparing tax schedules

The tax schedule defaulting within Purchasing Item Detail Entry(Transactions - Purchasing - Purchase Order Entry - expansion box to the right of Item) will be compared to another tax schedule. The other tax schedule used for comparison is listed in the table below:

NoteThe tax details that are common between the two schedules will be used.
Tax Calculation OptionInventory ControlShipping MethodDefault Tax SchedulePrompt Name
AdvancedNot Applicable No Shipping MethodTax schedule assigned to the purchase order in Purchase Order EntryPurch Addr Tax Sched
AdvancedNot Applicable PickupTax schedule assigned to the purchase order Purchase Order EntryPurch Addr Tax Sched
Advanced RegisteredDeliveryPurchase tax schedule assigned to the site in Site Maintenance (Cards - Inventory - Site)Site Tax Schedule ID.
AdvancedNot RegisteredDeliveryPurchases tax schedule assigned in Company Setup(Setup-Company-Company)Company Tax Sched
Single ScheduleNot ApplicableNot ApplicableTax schedule that is assigned as the single tax schedule in Purchase Order Processing Setup Options (Setup-Purchasing-Purchase Order Proc.-Options) Tax Schedule ID


This article was TechKnowledge Document ID: 26277
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Id. de artículo: 874084 - Última revisión: 04/04/2016 16:36:00 - Revisión: 5.0

Microsoft Dynamics GP 2015, Microsoft Dynamics GP 2013, Microsoft Dynamics GP 2010, Microsoft Dynamics GP 10.0

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