Microsoft Dynamics GP Sales Tax – More Detail

I was sent an email recently from someone who ready my January Post (link below) regarding Microsoft Dynamics GP Sales Tax Calculations.  The email requested more information on the following section of the blog:

I was sent an email recently from someone who ready my January Post (link below) regarding Microsoft Dynamics GP Sales Tax Calculations.  The email requested more information on the following section of the blog:

Originally Posted 5/29/13

I was sent an email recently from someone who ready my January Post (link below) regarding Microsoft Dynamics GP Sales Tax Calculations.  The email requested more information on the following section of the blog:

If the item is going to be delivered to the customer, AND the tax was setup with the item, we charge based on the tax details that are common in both the Item tax schedule AND the customer’s tax schedule.

Original Blog Post:

 My Response:

Ok let’s get theoretical.

Item Setup:

Let’s say you have an item in inventory that is taxable only for the state sales tax amount but not the local sales tax amount.  You would create a tax schedule that includes only the state detail.  This means that you need to have the state sales tax detail entered separately from your local tax detail.

Customer Setup:

You have a customer that lives in your local area and they are not tax exempt.  So for the customer you would use a tax schedule that includes both the state detail and the local detail.

Tax Calculation:

So when you sell this item to this customer, the only tax that would be calculated would be the detail that they share in common, which would be the state tax.

Caveat:

This would only exist if the item is set with the Sales Tax Option as Taxable.  If it is set to Non-Taxable, no change is charged regardless of how the customer is setup.  If it is based on customers, all the details assigned to the Tax Schedule on the customer gets charged.

Thanks for asking Tim! 

Author: Belinda Allen

Belinda Allen (Microsoft MVP) is both a Microsoft Certified Professional for Dynamics GP (MCP) and a Microsoft Certified Trainer (MCT). She is also the co-founder of Smith & Allen Consulting, Inc. (www.saci.com), a business management software consulting firm for over 24 years. Belinda began implementing ERP systems so long ago that Windows was not an operating system, but an application. Larger businesses used old Main Frames with monitors that were Green and Black and smaller business did accounting by hand. Having seen the evolution that has taken place over the years from pieces of paper to analytics, Belinda still gets excited every time she helps a business improve. Belinda is also well known for her Blog www.BelindaTheGPcsi.com. Her blog is about sharing really useful information about the product quickly and succinctly. She has earned the nickname GP CSI because she excels at reviewing GP problems and figuring what went wrong and why. With followers all over the Globe she is able to share knowledge and achieve her mission: “To Improve the Lives and Business Success of my Followers.” In her time off, Belinda enjoys sailing, woodturning, crochet/knitting, sewing/quilting, reading and playing the ukulele (Belinda often participates in Ukulele Jams in NYC.)

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