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Evo-ERP and DBA Classic >> Sales >> SO-A Invoice tax only
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Message started by markoptics on 01/27/10 at 09:38:15

Title: SO-A Invoice tax only
Post by markoptics on 01/27/10 at 09:38:15

HI, we currently make a product code with misc\salestax and the gl glass is set up to post to our sales tax account. We enter this item number in our SO (SO-A) and then invoice and post. However the invoice $$ amount always goes to the taxable sales gl account and not the sales tax account we have set up in the gl class code we have on the item number. What are we doing wrong? Is there a better way to invoice for tax only?

Title: Re: SO-A Invoice tax only
Post by Dawn on 01/27/10 at 14:51:21

I tested this in my Test Company.

AM-C add new GL act "9100" call it a "L" for Liability
SM-C add "TAX", click on Item Class GL at bottom, click add "TAX" (the one you just created), put "9100" in all the GL areas so it doesn't default to normal GL's.
IN-B add "TAX", Class: "TAX" and put N to Taxable?, save.

In the SO make sure the item still says N to Taxable? (Remember in Customer Master file tax is generally setup already setup) otherwise you will tax twice.
Release SO and Invoice out. Post to the GL and run GL-E for act "9100" and it should be there as a credit as it is a liability to be paid out to the state.

Doing it this way it will not show up in the AR-K report or transfer in the AR-L, so when you have to remit the tax to gov't you will have to run GL-E every time to get an accurate $ due.

Title: Re: SO-A Invoice tax only
Post by Lynn_Pantic on 01/27/10 at 17:48:07

The better way to invoice tax only is to invoice for a Non-Inventory part number the total taxable sales amount, a positive line set as Taxable and a negative line set as non-taxable. That will generate an invoice with a net $0 product amount but the tax amount will be correct and it will show correctly on the sales tax reporting. You can do the same thing in reverse to credit tax that was charged when it shouldn't have been.

To your original question, Julie, check the customer in AR-A. If there is a Sales GL account set up for the customer then that is where ALL the sales will go, regardless of item class.