Sage 100

Any ideas why purchase order sales tax would occasionally not post to the assigned sales tax account on the DTR even though it shows on the Receipt Register? It looks like the tax amount posted to the purchase variance account. The same PO can post one receipt with the tax fine, then another with the tax amount posting to the purchase variance account. As far as I can tell, it is only on one step goods/invoice receipts.

How is division maintenance setup? As there is a Sales Tax field in there? Or do they have Sales Tax Maintenance setup for the different tax codes?

I don't see anything in AP division maintenance about allocating sales tax to the item cost. Nor in the AP sales tax maintenance. When I look at a receipt register, it will allocate tax on one item, but not the other. I used to know where this was! Oh, my kingdom for want of a few brain cells...

Depending on the accounts setup in Div Maint, are you sure the sales tax isn't being combined with another account in the DTR? otherwise wouldn't you be out of balance?

The sales tax acct in AP div maintenance is the expected sales tax acct. There is only one division. It appears to be item specific. Two items in the same product line, on the same PO, received at the same time: one allocated the sales tax to the item cost, the other doesn't.

What version Sage?

Is it possible some lines on the PO are flagged for use tax and some are not?

Sage 2016 Standard

All the items are flag no on use tax

Here's an example

So it looks like they're using Landed Cost to allocate it. Do some lines not have the LC box checked?

Isn't that Landed Cost?

In PO setup ""Allow Entry of Landed Cost"" is unchecked. Every item in Item Maintenance has ""Allocate Landed Cost"" checked. If I click on the field, I get a message: ""Allocate Landed Cost is Read Only"" I used to teach this back in the days of the Training Centers, so I know it's a setting somewhere. I just don't remember where...

Also, it appears to be Tax Class specific. When I change the tax class on the same PO line item, it changes if it allocates the sales tax or not.

Forget the tax class. the other tax classes are not checked to use in purchasing...

Here in the sales tax code setup? Something with nonrecoverable tax?

The sales tax code is not item specific, so I don't think that's it. PO Allow Entry of Landed Cost was turned off, yet ""Allocate Landed Cost"" was checked on all items. And it couldn't be changed since the PO option was unchecked. This also hid the LC field in Product Line Maintenance, PO line entry, and Receipt line entry. I turned it on, unchecked LC on the lines in the PO. Made sure it was unchecked in ROG line entry. Still get the sales tax allocated to the item cost. I haven't found anything in Sage City so far.

I FOUND THE ANSWER :) This is related to the Library Master Tax Code code setting ""Expense to Vendor/Item"", which I do remember. But in this case, when I looked at the Tax Code Record, this value was unchecked. But wait, there's more! When you create a PO, it copies that value into the PO_PurchaseOrderTaxSummary table. So even if you uncheck it on the tax code, it is still checked on the PO itself. That's what got me. Bob Pfahnl's first question to me was if it was this setting. And since it wasn't checked on the tax code, I said ""No"", Guess again... This only happens if you have the tax class activated for purchases on the tax code. It is designed for doing Receipt of Goods and Invoice in one step. In fact, you can get some pretty erroneous data if you do it in two step style. For anyone who wants more detail on this, I've attached a word doc showing my research notes.

NOW I can go to the bar and enjoy my beer! Appreciate the follow-up. Are you submitting your findings to Sage so they can fix the issue in v2021? Now go enjoy your weekend.

@JeffSchwenk - you should know by now that Sage never ""fixes"" WADs...

One other detail. It appears that you cannot use VI to update the PO_PurchaseOrderTaxSummary.m4t table. At least it didn't show up in my list in Sage 100 2016 standard. Fortunately for me, there were only 2 open PO's that might be impacted by this. So I DFDM'd away for 2 records. OK JEFF, WHERE'S THAT BEER!

Clark - your post was very timely. Working with a client doing business in UK wanting to activate sales tax for VAT for both PO & AP.