Sage 100

v2015 5.20.2. Customer's sales tax on freight is not working correctly. I believe it is supposed to calculate tax on freight only if the line item is taxable. There's is calculating it on ALL freight charges. Am I mistaken?? Ours works on v2016 i.e. no tax on freight if none of the order is taxable. Yes, we use Avalara but it works with other tax schedules as well. Not on customer's - any and all tax schedules are calculating sales tax on freight. Any ideas??

Does the tax code have the ""taxable freight"" box checked?

Yes, it does.

Is there more than one tax code assigned to the tax schedule the order is using?

2016, ABC data, checkbox for taxable freight and a freight only invoice = tax charged. My guess: WAD. I don't know how the line items could affect taxable freight, and believe the settings for the Tax Code are what prevail (...but I have no experience with Avalara).

The problem isn't that it ISN'T calculating sales tax on freight but that it is for all freight charges, whether or not the order is taxable.

I tested this in our v2016 using a MN tax schedule with Freight selected. If the order has NO taxable lines, the freight charge is not taxable. If you change the line to TX, the freight is then taxable. Googled it and found that is how it is supposed to work. Can't duplicate on customer's v2015. All freight is taxed.

I wonder if the tax code assigned to the item in item maintenance take precedence.

Do you mean TX or NT?? I used the same test on customer's data and it doesn't work like ours.

In fact, I used /M on both then changed the NT to TX and back. Works correctly in ours v2016, not in theirs v2015.

Yes. That's what I meant. Strange. Maybe try testing on another 2015 if you can and see if you get the same behavior.

Try a different tax schedule on the order. Set up a ""MN"" tax schedule on the clients system and see what happens.

Already did that as well. All schedules work the same.