Sales Order related queries, topics and discussions
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#338 Question

Can I enter an order with items have its own TAX?
TAX amount will be recalculated if TAX code define in the order line only if ‘TAX override’ set as No.

Answer

I don't see any mystery here. You have to distinguish between what happens at order entry and what happens when the tax is actually calculated.

• The Tax Calculation Rule in the company file applies at order entry time and customer record entry/update only:

o If you have the Tax Calculation Rule = No, the default VAT code on the order line will be taken from the stock item record, and you will not be able to enter a tax code for the customer, only whether the customer is liable for tax or not (although an export customer outside the European Community is never liable for VAT). There will be no default overriding tax rate on the order head.
o If you have the Tax Calculation Rule = Yes, the default VAT code on the order line will be taken from the customer record and will also be the default overriding VAT code on the order head.

You can of course alter the overriding VAT code on the order head as you enter the order or at any time subsequently, and similarly you can alter the VAT code on the order line once you have entered it.

• The Tax Calculation Rule in the company file does not apply at VAT calculation time. All that applies is whether the tax code on the order line can be overridden. If so, and there is an overriding tax code on the order head, the overriding tax code will apply to the order line instead of the tax code actually entered on the order line..

So, if the client wishes to guarantee the VAT code will be taken from the stock file, they should set the Tax Calculation Rule to No and choose a VAT code which cannot be overridden, or make sure that there is no overriding VAT code on the order head.

The following illustrate this when:

Order No. 0000000000

The Tax Calculation Rule = No (order line VAT code from the stock item record). In addition, an overriding VAT Code of 01 has been manually set on the order head, but this is only effective for line 000020.

Order No. 0000000001

The Tax Calculation Rule = Yes (order lineVAT code from the customer record). In addition, an overriding VAT Code of 01 has been automatically set on the order head, but this is not effective.