All of our companies are tax exempt, but with a new venture we have our first and only company that will have tax. Our Materials Department would like the tax to show on the PO. Our AP clerk is concerned about the volume of buyers messages this could cause. She would rather do the tax as an add on charge.

Any advice on best practice?

Surely it would only create buyers messages if the tax on the invoice did not equal the tax on the PO? If the tax is a set % then this shouldnt happen.

Steve

You can attach the tax code to the item in the item master or just have the buyer attached the code on the PO for specials or service.

Ap can use the AOC function to adjust the tax if it is not correct, this will prevent the buyer messages.

Conniel:

I'm sorry for your company that now you have track taxes. Yuck!

No matter what method you use for creating the tax, please take care to keep VERY GOOD TRACK of the taxes paid. The companies that I've worked for over the last 12 years have all been taxable. We have had tax auditors come in constantly to audit taxes. Sometimes they dig into records many years old. It's common to see auditors camped out in a conference room for days, weeks, sometimes months, checking up on taxes paid. The IRS, every state, and sometimes municipalities, can all show up unexpectedly for an audit.

So good luck, and get ready for the audits! :lala: