Posting Levels in Dynamics GP – A Review

I have been getting questions from many of my clients and network on the various levels of postings to the General Ledger accounts that are available in Dynamics GP. Hence I decided to provide some information on the same to all the folks in this community.

The level of posting to the GL accounts is determined from couple of setups working hand in hand in Dynamics GP which I will elaborate below. The initial setup is to define the level of postings for various accounts in the Account Maintenance window from Cards >> Financials >> Accounts as illustrated below.

We can specify the levels of posting from the various series into the General Ledger module. The various options available for posting levels are

• Detail
• Summary

Once this has been setup, we need to define the level of posting for various transactions in various modules in the Posting Setup window from Microsoft Dynamics GP >> Tools >> Setup >> Posting >> Posting as illustrated below.

So for the purpose of this case study, I created a couple of receivable invoices with the distributions explained below and saved them into a batch called RECVINV.

Invoice #1

Invoice Number	Account Number	Type	Debit (DR)	Credit (CR)
INV0001	000-1200-00	RECV	$500	-
INV0001	000-4100-00	SALES	-	$500

Invoice #2

Invoice Number	Account Number	Type	Debit (DR)	Credit (CR)
INV0001	000-1200-00	RECV	$700	-
INV0001	000-4100-00	SALES	-	$700

And I have setup the account 000-1200-00 to post at a Summary Level in the Sales Series in the Account Maintenance window, whereas I have setup the account 000-4100-00 to post in detail in the Sales Series in the Account Maintenance window.

Now, in the Posting Setup window, if we select the option to create one journal entry per transaction, posting will always be done at a detailed level (irrespective of the setting specified in the Account Maintenance window) (i.e.) There will be a one-to-one match between the distribution lines in the journal entry and the distribution that we had noted in the transaction posted in the sub ledgers.

So when the above batch RECVINV is posted in the Receivables module, there will be 2 journal entries created with the distributions explained below.

Journal Entry #1

Journal Entry	Account Number	Debit (DR)	Credit (CR)
12345	000-1200-00	$500	-
12345	000-4100-00	-	$500

Journal Entry #2

Journal Entry	Account Number	Debit (DR)	Credit (CR)
12346	000-1200-00	$700	-
12346	000-4100-00	-	$700

However in the above window, if we specify the option to create a journal entry per batch, we have two levels of roll ups that are available when journal entries are created when the sub ledger transactions are posted.

If the “Use Account Settings” option is unchecked, then when a batch of transactions is posted from the sub ledger module, the system creates one journal entry for all transactions posted in the sub ledger batch. However, there is no roll-up done at the account level, even though the accounts have been setup to post at summary level in the Account Maintenance window.

So in the same case study example above, if the batch was posted in the Receivables module, there will be one journal entry created with the distributions illustrated below.

Journal Entry #1

Journal Entry	Account Number	Debit (DR)	Credit (CR)
12345	000-1200-00	$500	-
12345	000-4100-00	-	$500
12345	000-1200-00	$700	-
12345	000-4100-00	-	$700

If the “Use Account Settings” option is checked, then when a batch of transactions is posted from the sub ledger module, the system creates one journal entry for all transactions posted in the sub ledger batch and the distribution amounts are rolled based on the posting levels for the accounts that are defined in the Account Maintenance window.

So in the same case study example above, if the batch was posted in the Receivables module, there will be one journal entry created with the distributions illustrated below.

Journal Entry #1

Journal Entry	Account Number	Debit (DR)	Credit (CR)
12345	000-1200-00	$1200	-
12345	000-4100-00	-	$500
12345	000-4100-00	-	$700

Note: Keep in mind that the various levels of postings will also be in effect only when we perform a batch posting in the sub ledger. If the posting is done at a transaction level, the system will always post in detail to the General Ledger (irrespective if the settings in the Account Maintenance window and the Posting Setup window for the specific sub ledger transaction).

Hope this article provides some insight into the General Ledger posting levels that are available in Dynamics GP.

http://cvakumar.com/msdynamics/2010/05/16/posting-levels-in-dynamics-gp-a-review/

Maintaining Data Integrity between Sub Ledgers and General Ledger

I have been involved in the process of reconciliation between the sub ledgers and the general ledger at various clients and there has been various scenarios in which there has been a break between the sub ledgers and the general ledger balances. A few key scenarios are quoted below

1. A transaction posted in the sub ledgers do not have a corresponding transaction in the general ledger.
2. A transaction posted in the sub ledger is backed out/corrected at the general ledger level.
3. Manual posting to the sub ledger control accounts in the General Ledger.

In this article, I am going to provide some tips to avoid any of the above situations and ensure that there is data integrity between the sub ledgers and the general ledger. This will ensure that the periodic audits done in the system proceeds in a smooth manner to a great extent.

The first two errors listed above can be prevented by disabling the following options in the General Ledger setup window from Microsoft Dynamics GP >> Tools >> Setup >> Financials >> General Ledger.

By unmarking the option “Deletion of Saved Transactions”, a journal entry batch that is created when a sub ledger transaction is posted, cannot be deleted at the General Ledger level. This prevents any deletion of a journal entry that was created from a sub ledger transaction. Note that if we have enabled “Post Through General Ledger” in the posting setup, this would not make a big difference, since whenever a transaction is posted in the sub ledger, the corresponding general ledger transactions get automatically posted as well.

By unmarking the option “Voiding/Correcting of Subsidiary Transactions”, the system will not allow us to void a journal entry batch that is created when a sub ledger transaction is posted. This prevents any voiding of a journal entry that was created from a sub ledger transaction. that if we have enabled “Post Through General Ledger” in the posting setup, this would not make a big difference, since whenever a transaction is posted in the sub ledger, the corresponding general ledger transactions get automatically posted as well. Further, this option will not allow the user to back-out (or) back-out and correct a journal entry that was posted for a sub ledger transaction.

The third error listed above can be eliminated by disallowing account entry for all the sub ledger control accounts like the GL accounts for Accounts Receivable, Accounts Payable and Inventory accounts, in the Account Maintenance window from Cards >> Financial >> Accounts, as shown below. We need to unmark the option “Allow Account Entry” for all the control accounts needed.

Unmarking this option for the key control accounts, will prevent the user from picking up this account in any transaction entry windows and will prompt the message as shown below.

This option will prevent any direct posting into the sub ledger control accounts in the General Ledger. All postings will happen only from the sub ledger module.

These options mentioned above are some key setups that we can enable in GP to minimize the data integrity issues between the sub ledgers and the general ledger which consumes precious reconciliation time which is spent by many resources during the key audit time.

http://cvakumar.com/msdynamics/2010/05/16/maintaining-data-integrity-between-sub-ledgers-and-general-ledger/

Who has that record locked?

I love the GP Newsgroup. Helping others with their problems helps me learn more about GP. Here's what I tought myself today in response to a newsgroup post.

Run this against your company database to select the users which users have SOP Documents locked:

select distinct l.row_id, t.dex_row_id, t.SOPNUMBE, a.USERID
from tempdb.dbo.Dex_Lock l
inner join SOP10100 t
on l.row_id = t.dex_row_id
inner join DYNAMICS.dbo.Activity a
on l.session_id = a.SQLSESID
where right(rtrim(table_path_name), 8) = 'SOP10100'

http://mbsguru.blogspot.com/2007/12/who-has-that-record-locked.html

Deleting Empty Batches in SOP

Schedule this script to run periodically against your company database to delete empty SOP batches automatically. It will check to verify that there aren't any transactions in the batch and that there is not a batch activity record first.

DECLARE @INTERID varchar(10),
@CMPNYNAM varchar(31)

SET @INTERID = DB_Name()
SELECT @CMPNYNAM = CMPNYNAM from DYNAMICS.dbo.SY01500 where INTERID = @INTERID

DELETE SY00500
where BCHSOURC = 'Sales Entry'
and BACHNUMB not in (select BACHNUMB from SOP10100)
and BACHNUMB not in (select BACHNUMB from DYNAMICS.dbo.SY00800 where CMPNYNAM = @CMPNYNAM and TRXSOURC = 'Sales Transaction Entry')

http://mbsguru.blogspot.com/2007/11/deleting-empty-batches-in-sop.html

Sales Tax Simplified

It seems like the Dynamics GP forums are alive with sales tax questions lately. So, I thought I might tackle this one in the same manner that I do in the classroom-- by breaking it down in to steps. I treat sales tax as a three step process.

1. Document Default
2. Item or Setup Default (depending on if you are working with Receivables or Sales Order Processing, for example)
3. Tax schedule comparison

So, for this post, we are going to keep it simple and look at taxes in Receivables Management and Payables Management. I promise another post on Sales Order Processing and Purchase Order Processing next week :) But, for now, lets keep it simple.

Let's start with Step 1. There is one key setup that can impact the tax schedule that appears on a document (whether it be Payables or Receivables) by default. In your company setup, Tools>>Setup>>Company>>Company>>Options, there is a setting to Use Shipping Method to Determine Default Tax Schedule.

• If this option is marked, then the tax schedule that appears on the transaction will be dependent on whether the shipping method is a pickup or delivery method (more on this later).
• If this option is unmarked, then the tax schedule that defaults on the transaction will always be the Vendor Address' schedule (on Payables) or the Customer Address' schedule (for Receivables)

Now, let's look at Step 2. Now, Step 2 assumes that in your setup you have chosen Advanced for your tax calculations (Tools>>Setup>>Purchasing/Sales>>Payables/Receivables>>Options) rather than Single Schedule. Single schedule will always charge according to Vendor or Customer Address' schedule without Step 2 or Step 3.

In Step 2, we need to find the setup schedule (in Payables or Receivables). This is the schedule specified for each amount (Purchases, Sales, Freight, Misc, etc) in the setup options window mentioned above. In most examples in training manuals, these schedules are setup to include ALL DETAILS.

So, in Step 3, the schedule from the document (Step 1) is compared to the schedule from setup (Step 2). Details that the two schedules are compared, and only those that exist in both places are calculated.

Easy right? I know, I know..you are probably saying, huh? So, lets look at an example. Let's say that I have the following tax schedules set up:

• MOTAX: Contains the MOSTATE, KCCITY, MOSPEC, and JCKCTY Details which will be assigned to my Missouri based customers
• KSTAX: Contains the KSSTATE and KCKCITY Details which will be assigned to my Kansas based customers
• VALID: Contains the MOSTATE, KCCITY, JCKCTY, KSSTATE, KCKCITY which contains all of the currently valid tax details. I have purposely left off MOSPEC, it was a special tax that was only charged last year in MO and is no longer valid.

I set up my customer ABC AUTO with the tax schedule MOTAX, and I assign KSTAX as the default tax schedule for sales in Company Setup. VALID is specified in my Receivables Management Setup as the tax schedule for Sales.

Let's assume that we have chosen to have shipping method determine default tax schedule. So if I enter a Receivables invoice for ABC AUTO, the tax schedule will default as follows:

• Shipping Method with a delivery type: MOTAX (from Customer Address)
• Shipping Method with a pickup type: KSTAX (from Company Setup)

So, lets assume I use a Shipping Method with a delivery type, so MOTAX defaults. This would then be compared to the VALID tax schedule specified in setup. What is in common?

• MOSTATE, KCCITY, JCKCTY are the only taxes that would be calculated, since MOSPEC did not exist in the tax schedule in Receivables Management setup for comparison

I think of the tax schedule specified in setup as my "control" schedule, containing all valid tax details to be used in comparison against the documents. In many cases, this would be all details. But in some cases, as outlined above, it may be easier to remove a tax detail from the one control/setup schedule than to remove it from all schedules that contain it. This is also a great approach if a tax is only valid (or invalid) for certain portions of the year (think of sales tax holidays).

Please post back your questions or comments or examples to help with the understanding. I promise more next week on distribution. Have a great weekend!

PART TWO

Okay, okay, okay, please feel free to give me a very hard time for the delay in posting part two in our compelling sales tax saga. Last time, we worked through the basics of defaulting and comparing tax schedules for receivables and payables transactions. So, now we can move on to Sales Order Processing and Purchase Order Processing, where inventory items can impact the taxes that are calculated. The examples that follow assume that you have marked to use shipping method to determine default tax schedule in your company setup (as discussed in our previous post). Again, let's look at taxes as a three step process.

1. Document Default
2. Line Item Default
3. Tax Schedule Comparison

So, step one works pretty much the same as it did in our earlier post. However, we need to take it a step further by considering the inventory site, like the following examples (assuming you are registered for inventory) in Sales Order Processing:

• Shipping Method Delivery: Default tax schedule assigned to Customer's Ship To Address
• Shipping Method Pickup: Default tax schedule assigned to the Site

Now, although I call this a "document" default, because Shipping Method and Site can vary by line item in Sales Order Processing and Purchase Order Processing, this default actually is stored by line item.

So, what about Step 2? Well Step 2 takes in to consideration the inventory item card (or the Sales Order/Purchase Order Setup when dealing with non-inventory items). There are three possible settings for inventory items for Sales and Purchase taxes:

• Nontaxable: No tax is ever charged for this item
• Base on Customer/Vendor: This will charge according to the shipping method
• Taxable: Specify a tax schedule that represents all possible tax details to be charged on this item, more on this later...

So, let's work through a couple examples. First, let's look at the Base on Customer setting. Let's assume that we have entered an invoice for our customer ABC AUTO. They want all items to be shipped to them (Shipping Method- Delivery) at their Missouri location which is assigned to the tax schedule MOTAX which includes the MOCITY and MOSTATE tax details.

Let's say that ABC AUTO buys two items from us, the first item is a gift basket, BASKETOFUN. BASKETOFUN is set with the sales tax option of Base on Customer. So what does that do? If we were to click the item number expansion arrow for this line in Sales Transaction Entry, we would see the following information being stored in the Sales Item Detail Entry window:

• Shipping Method: Delivery
• Ship To Tax Schedule: MOTAX
• Item Tax Option: Base on Customer
• Item Tax Schedule: n/a

Therefore, in this example, all details in MOTAX would be calculated. Now, let's shake it up and say that this particular line item changed to a Shipping Method of Pickup. Let's say that this line item is being sold from our NORTH site with the tax schedule NYTAX. We would then see the following in the Sales Item Detail Entry window:

• Shipping Method: Pickup
• Site Tax Schedule: NYTAX
• Item Tax Option: Base on Customer
• Item Tax Schedule: n/a

So, in this scenario, what taxes would be calculated? All details in the NYTAX schedule would be calculated. Sometimes this scenario is confusing to users, because the item is set to Base on Customers. But what that really means is that the item's taxability is based on the Shipping Method itself, and how the tax schedule defaults.

But, wait, I said that we sold two items right? So let's look at the next item that ABC AUTO bought. They bought our new virtual gift basket, VIRTUALBASKET. Now, some states tax the virtual gift basket, and others do not. So we have set up the VIRTUALBASKET with a sales tax option of Taxable. We have then assigned a special tax schedule to it called VIRTUAL, which includes the taxes that are calculated on virtual products. In our case, let's say that it includes the MOSTATE, KSSTATE, and COSTATE tax details.

If we look at the Sales Item Detail Entry, we would see:

• Shipping Method: Delivery
• Ship to Tax Schedule: MOTAX
• Item Tax Option: Taxable
• Item Tax Schedule: VIRTUAL

Which taxes would be calculated? Only those that are common between MOTAX and VIRTUAL, in this case the MOSTATE detail would be calculated.

But, let's mix it up and say that the customer has asked that this item be shipped to their California location which is assigned to the CATAX schedule (which includes the CASTATE and CACITY tax details). So, let's look a the Sales Item Detail Entry again with these details:

• Shipping Method: Delivery
• Ship to Tax Schedule: CATAX
• Item Tax Option: Taxable
• Item Tax Schedule: VIRTUAL

Which taxes would be calculated in this scenario? None, because the CATAX schedule does not have any details in common with VIRTUAL. This is correct, since we said that our item was only taxable by Missouri (MOSTATE), Kansas (KSSTATE), and Colorado (COSTATE) not by California.

So, the Taxable option for items creates the most flexibility when you have items that are taxed in some states and other items taxed in all states (or different states). I have found this comes in to play quite often with technology products, including software downloads, where some states are more aggressive in taxing these items than others.

Clear as mud? Share you questions, hints, etc and I am happy to update the post--from Alaska, where I am this week teaching :)

Sales Tax Simplified

It seems like the Dynamics GP forums are alive with sales tax questions lately. So, I thought I might tackle this one in the same manner that I do in the classroom-- by breaking it down in to steps. I treat sales tax as a three step process.

1. Document Default
2. Item or Setup Default (depending on if you are working with Receivables or Sales Order Processing, for example)
3. Tax schedule comparison

So, for this post, we are going to keep it simple and look at taxes in Receivables Management and Payables Management. I promise another post on Sales Order Processing and Purchase Order Processing next week :) But, for now, lets keep it simple.

Let's start with Step 1. There is one key setup that can impact the tax schedule that appears on a document (whether it be Payables or Receivables) by default. In your company setup, Tools>>Setup>>Company>>Company>>Options, there is a setting to Use Shipping Method to Determine Default Tax Schedule.

• If this option is marked, then the tax schedule that appears on the transaction will be dependent on whether the shipping method is a pickup or delivery method (more on this later).
• If this option is unmarked, then the tax schedule that defaults on the transaction will always be the Vendor Address' schedule (on Payables) or the Customer Address' schedule (for Receivables)

Now, let's look at Step 2. Now, Step 2 assumes that in your setup you have chosen Advanced for your tax calculations (Tools>>Setup>>Purchasing/Sales>>Payables/Receivables>>Options) rather than Single Schedule. Single schedule will always charge according to Vendor or Customer Address' schedule without Step 2 or Step 3.

In Step 2, we need to find the setup schedule (in Payables or Receivables). This is the schedule specified for each amount (Purchases, Sales, Freight, Misc, etc) in the setup options window mentioned above. In most examples in training manuals, these schedules are setup to include ALL DETAILS.

So, in Step 3, the schedule from the document (Step 1) is compared to the schedule from setup (Step 2). Details that the two schedules are compared, and only those that exist in both places are calculated.

Easy right? I know, I know..you are probably saying, huh? So, lets look at an example. Let's say that I have the following tax schedules set up:

• MOTAX: Contains the MOSTATE, KCCITY, MOSPEC, and JCKCTY Details which will be assigned to my Missouri based customers
• KSTAX: Contains the KSSTATE and KCKCITY Details which will be assigned to my Kansas based customers
• VALID: Contains the MOSTATE, KCCITY, JCKCTY, KSSTATE, KCKCITY which contains all of the currently valid tax details. I have purposely left off MOSPEC, it was a special tax that was only charged last year in MO and is no longer valid.

I set up my customer ABC AUTO with the tax schedule MOTAX, and I assign KSTAX as the default tax schedule for sales in Company Setup. VALID is specified in my Receivables Management Setup as the tax schedule for Sales.

Let's assume that we have chosen to have shipping method determine default tax schedule. So if I enter a Receivables invoice for ABC AUTO, the tax schedule will default as follows:

• Shipping Method with a delivery type: MOTAX (from Customer Address)
• Shipping Method with a pickup type: KSTAX (from Company Setup)

So, lets assume I use a Shipping Method with a delivery type, so MOTAX defaults. This would then be compared to the VALID tax schedule specified in setup. What is in common?

• MOSTATE, KCCITY, JCKCTY are the only taxes that would be calculated, since MOSPEC did not exist in the tax schedule in Receivables Management setup for comparison

I think of the tax schedule specified in setup as my "control" schedule, containing all valid tax details to be used in comparison against the documents. In many cases, this would be all details. But in some cases, as outlined above, it may be easier to remove a tax detail from the one control/setup schedule than to remove it from all schedules that contain it. This is also a great approach if a tax is only valid (or invalid) for certain portions of the year (think of sales tax holidays).

Please post back your questions or comments or examples to help with the understanding. I promise more next week on distribution. Have a great weekend!

How taxes are calculated in Receivables Management, Sales Order Processing and Invoicing (872674)

INTRODUCTION

This article describes how taxes are calculated in the following modules in Microsoft Dynamics:

•	Receivables Management
•	Sales Order Processing
•	Invoicing

Back to the top

MORE INFORMATION

General Information

Generally, taxes are calculated based on the following:

1.	The shipping method that is assigned to the Receivables Management transaction or to each Sales Order Processing or Invoicing line item affects how taxes will be calculated. a. The shipping type (Delivery or Pickup) of the shipping method assigned to a transaction or a Sales line item will dictate which sales tax schedules will be compared only if the Use Shipping Method When Selecting Default Tax Schedule check box is selected in the Company Setup Options window. To open the Company Setup Options window: • In Microsoft Dynamics GP 10.0, click Microsoft Dynamics GP, point to Tools, point to Setup, point to Company, click Company and then click the Options button in the Company Setup window. • In Microsoft Dynamics GP 9.0 and 8.0, click Tools, point to Setup, point to Company, click Company and then click the Options button in the Company Setup window. b. For Sales Order Processing or Invoicing only, the Tax Calculations setting that is selected in the Sales Order Processing Setup Options window or in the Invoicing Setup Options window (Advanced or Single Schedule) will also affect whether the shipping method will be considered in tax calculations. To open the Sales Order Processing Setup Options window: • In Microsoft Dynamics GP 10.0, click Microsoft Dynamics GP, point to Tools, point to Setup, point to Sales, click Sales Order Processing, and then click the Options button in the Sales Order Processing Setup window. • In Microsoft Dynamics GP 9.0 and 8.0, click Tools, point to Setup, point to Sales, click Sales Order Processing, and then click the Options button on the Sales Order Processing Setup window. To open the Invoicing Setup Options window: • In Microsoft Dynamics GP 10.0, click Microsoft Dynamics GP, point to Tools, point to Setup, point to Sales, click Invoicing, and then click the Options button in the Invoicing Setup window. • In Microsoft Dynamics GP 9.0 and 8.0, click Tools, point to Setup, point to Sales, click Invoicing, and then click the Options button in the Invoicing Setup window. Note The Single Schedule setting does not take shipping methods and Item Sales Tax Options into consideration. All Sales invoices will calculate taxes that depend on the tax details assigned to the single schedule.
2.	The sources of the tax details that will be used to assess taxes for each Sales line item in Sales Order Processing/Invoicing depend on whether the Inventory Control module is registered or not.
3.	The Non-Inventoried flag in the SOP10200 (Sales Transaction Amounts Work) table or the IVC10101 (Invoicing Transaction Amounts Work) also affects how taxes are calculated for each Sales line item. The term "inventoried" means that the line item is also stored in an item card in Inventory Control. The Tax Option selected in the Non Inventory Items field on the Sales Order Processing Setup Options window or on the Invoicing Setup Options window (Taxable, Nontaxable, and Base on Customers) will affect the taxes that will be calculated for non-inventoried items. The Sales Tax Option selected items maintained in item cards (Taxable, Nontaxable, and Base on Customers) will also affect how taxes will be calculated for sales line item. To open the Item Maintenance window, click Cards, point to Inventory, and then click Items.

Back to the top

Information about tax calculations

Receivables Management

1.

If the shipping method assigned to the transaction has a shipping type of Delivery: a. The tax schedule assigned to the customer will default into the Receivables Transaction Entry window. To find the tax schedule assigned to the customer, click Cards, point to Sales, and then click Customer. b. The tax schedule specified in the Sales field of the Receivables Setup Options window is then compared with the tax schedule of the transaction. To open the Receivables Setup Options window, follow these steps: • In Microsoft Dynamics GP 10.0, click Microsoft Dynamics GP, point to Tools, point to Setup, point to Sales, click Receivables, and then click the Options button on the Receivables Management Setup window. • In Microsoft Dynamics GP 9.0 and 8.0, click Tools, point to Setup, point to Sales, click Receivables, and then click the Options button on the Receivables Management Setup window. c. Taxes will be calculated for Sales tax details that are found in both tax schedules that are compared.

2.

If the shipping method assigned to the transaction has a shipping type of Pickup: a. The tax schedule selected in the Sales Tax Schedule field of the Company Setup window will default into the Receivables Transaction Entry window. To open the Company Setup window, follow these steps: • In Microsoft Dynamics GP 10.0, click Microsoft Dynamics GP, point to Tools, point to Setup, point to Company, and then click Company. • In Microsoft Dynamics GP 9.0 and 8.0, click Tools, point to Setup, point to Company, and then click Company. b. The tax schedule specified in the Sales field of the Receivables Setup Options window is then compared with the tax schedule of the transaction. c. Taxes will be calculated for Sales tax details that are found in both tax schedules that are compared.

Back to the top

Sales Order Processing and Invoicing

Single Schedule Tax Calculation

If the "Single Schedule" Tax Calculations setting is selected on the Sales Order Processing Setup Options window or on the Invoicing Setup Options window, taxes will be calculated for each tax detail assigned to tax schedule that is in turn selected in the Single Schedule field. The Single Schedule setting does not take shipping methods and Item Sales Tax Options into consideration. All Sales invoices will calculate taxes depending on the tax details assigned to the assigned single schedule.

Advanced Tax Calculation (Taxable, Nontaxable, Base on Customers)

1.	If the Taxable tax option is selected: a. If the shipping type of the shipping method that is used on the line items is Pickup: • For non-inventoried items and if Inventory is registered, taxes will be calculated based on the similar tax details that are found by Microsoft Dynamics GP when comparing the line item's Site Tax schedule and the line item's Item Tax Schedule. The Site Tax schedule defaults from the Sales tax schedule of the line item's Site ID. To view this, click Cards, point to Inventory, and then click Site. The line item's Item Tax Schedule will default from the tax schedule selected in Non Inventory Items field of the Sales Order Processing Setup Options window or of the Invoicing Setup Options window. • For non-inventoried items and if Inventory is not registered, taxes will be calculated based on the similar tax details that are found by Microsoft Dynamics GP when comparing the line item's Site Tax schedule and the line item's Item Tax Schedule. The line item's Site Tax schedule defaults from the tax schedule that is selected in the Sales Tax Schedule field of the Company Setup window. The line item's Item Tax Schedule will default from the tax schedule selected in the Non Inventory Items field of the Sales Order Processing Setup Options window or of the Invoicing Setup Options window. • For inventoried items and if Inventory is registered, taxes will be calculated based on the similar tax details that are found by Microsoft Dynamics GP when comparing the line item's Site Tax schedule and the line item's Item Tax Schedule. The line item's Site Tax schedule defaults from the Sales tax schedule of the line item's Site ID. To view this, click Cards, point to Inventory, and then click Site. The line item's Item Tax Schedule defaults from the tax schedule that is selected in the Tax Schedule ID field under the Sales Tax Option field of the Item Maintenance window. • For inventoried items and if Inventory is not registered, taxes will be calculated based on the similar tax details that are found by Microsoft Dynamics GP when comparing the line item's Site Tax schedule and the line item's Item Tax Schedule. The line item's Site Tax schedule defaults from the tax schedule that is selected in the Sales Tax Schedule field of the Company Setup window. The line item's Item Tax Schedule defaults from the tax schedule that is selected in the Tax Schedule ID field under the Sales Tax Option field of the Item Maintenance window. b. If the shipping type of the shipping method used on the line items is Delivery: • For non-inventoried items, taxes will be calculated based on the similar tax details that are found by Microsoft Dynamics GP when comparing the line item's Ship To Tax schedule ID and the line item's Item Tax Schedule. The line item's Ship To Tax schedule ID will default from the tax schedule assigned to the Ship To address of the customer. To view this, click Cards, point to Sales, point to Customer, and then click the Ship To link. The line item's Item Tax Schedule will default from the tax schedule selected in Non Inventory Items field of the Sales Order Processing Setup Options window or that of the Invoicing Setup Options window. • For inventoried items, taxes will be calculated based on the similar tax details that are found by Microsoft Dynamics GP when comparing the line item's Ship To Tax schedule ID and the line item's Item Tax Schedule. The line item's Ship To Tax schedule ID will default from the tax schedule that is assigned to the Ship To address of the customer. To view this, click Cards, point to Sales, point to Customer, and then click the Ship To link. The line item's Item Tax Schedule defaults from the tax schedule that is selected in the Tax Schedule ID field under the Sales Tax Option field of the Item Maintenance window. c. If the line item is not assigned a shipping method, no taxes will automatically be calculated for the line item. d. If no similar tax details are found between tax schedules being compared for a line item, no taxes will be calculated for the line item.
2.	If the Nontaxable tax option is selected, no taxes will be calculated for the Sales line item.
3.	If the Base on Customers tax option is selected, no tax schedule comparison is made. Instead, the following occurs: a. If the shipping type of the shipping method that is used on the line items is Pickup: • If Inventory is registered, all tax details in the line item's Site Tax schedule will be used to assess a tax amount for the line item. The line item's Site Tax schedule defaults from the Sales tax schedule of the line item's Site ID. To find this, click Cards, point to Inventory, and then click Site. • If Inventory is not registered, all tax details in the line item's Site Tax schedule will be used to assess a tax amount for the line item. The line item's Site Tax schedule defaults from the tax schedule selected in the Sales Tax Schedule field of the Company Setup window. b. If the shipping type of the shipping method that is used on the line items is Delivery, all tax details in the Ship To Tax schedule ID will be used to assess a tax amount for the line item. The Ship To Tax schedule ID defaults from the tax schedule that is assigned to the Ship To address of the customer. To view this, click Cards, point to Sales, point to Customer, and then click the Ship To link.

Freight Tax

1.	If the Taxable tax option is selected: a. If the shipping type of the shipping method assigned to the Shipping Method field of the Sales Customer Detail Entry window or of the Invoice Customer Detail Entry window is set to Pickup, the following occurs. Note To view the Sales Customer Detail Entry window, click Transactions, point to Sales, point to Sales Transaction Entry, and then click the Customer ID expansion button. To view the Invoice Customer Detail Entry window, click Transactions, point to Sales, point to Invoice Entry, and then click the Customer ID expansion button. • If Inventory is registered, the Tax Schedule ID field will default from the Sales tax schedule of the Default Site ID of the Sales transaction. This will then be compared with the Freight tax schedule selected in the Sales Order Processing Setup Options window to come up with the tax amount that will be assessed against the Freight Amount of the Sales transaction. • Inventory is not registered, the Tax Schedule ID field will default the Sales Tax Schedule of the Company Setup window. This will then be compared with the Freight tax schedule selected in the Sales Order Processing Setup Options window to come up with the tax amount that will be assessed against the Freight Amount of the Sales transaction. b. If the shipping type of the shipping method that is assigned to the Shipping Method field of the Sales Customer Detail Entry window or of the Invoice Customer Detail Entry window is set to Delivery, the Tax Schedule ID field will default the Tax Schedule assigned to the Ship To address of the customer. This will then be compared with the Freight tax schedule selected on the Sales Order Processing Setup Options window to come up with the tax amount that will be assessed against the Freight Amount of the Sales transaction.
2.	If the Nontaxable tax option is selected, no taxes will be calculated for the Freight amount of the Sales transaction.
3.	If the Base on Customers tax option is selected, no tax schedule comparison is made. Instead, the following occurs: a. If the shipping type of the shipping method that is assigned to the transaction is set to Pickup: • If Inventory is registered, the Tax Schedule ID field will default from the Sales tax schedule of the Default Site ID of the Sales transaction. All of its tax details will be used to assess taxes for the Freight Amount of the Sales transaction. • If Inventory is not registered, the Tax Schedule ID field will default from the Sales Tax Schedule of the Company Setup window. All of its tax details will be used to assess taxes for the Freight Amount of the Sales transaction. b. If the shipping type of the shipping method that is used on the line items is Delivery, all tax details in the Tax Schedule ID field, which will default from the tax schedule assigned to the Ship To address of the customer, will be used to assess taxes for the Freight Amount of the Sales transaction.

Miscellaneous Tax

1.	If the Taxable tax option is selected: a. If the shipping type of the shipping method assigned to the Shipping Method field of the Sales Customer Detail Entry window or of the Invoice Customer Detail Entry window is set to Pickup: • If Inventory is registered, the Tax Schedule ID field will default from the Sales tax schedule of the Default Site ID of the Sales transaction. This will then be compared with the Miscellaneous tax schedule selected on the Sales Order Processing Setup Options window to come up with the tax amount that will be assessed against the Miscellaneous Amount of the Sales transaction. • Inventory is not registered, the Tax Schedule ID field will default from the Sales Tax Schedule of the Company Setup window. This will then be compared with the Miscellaneous tax schedule selected on the Sales Order Processing Setup Options window to come up with the tax amount that will be assessed against the Miscellaneous Amount of the Sales transaction. b. If the shipping type of the shipping method that is assigned to the Shipping Method field of the Sales Customer Detail Entry window or that of the Invoice Customer Detail Entry window is set to Delivery, the Tax Schedule ID field will default the Tax Schedule assigned to the Ship To address of the customer. This will then be compared with the Miscellaneous tax schedule selected on the Sales Order Processing Setup Options window to come up with the tax amount that will be assessed against the Miscellaneous Amount of the Sales transaction.
2.	If the Nontaxable tax option is selected, no taxes will be calculated for the Miscellaneous amount of the Sales transaction.
3.	If the Base on Customers tax option is selected, no tax schedule comparison is made. Instead, the following occurs: a. If the shipping type of the shipping method that is assigned to the transaction is set to Pickup: • If Inventory is registered, the Tax Schedule ID field will default from the Sales tax schedule of the Default Site ID of the Sales transaction. All of its tax details will be used to assess taxes for the Miscellaneous Amount of the Sales transaction. • If Inventory is not registered, the Tax Schedule ID field will default from the Sales Tax Schedule of the Company Setup window. All of its tax details will be used to assess taxes for the Miscellaneous Amount of the Sales transaction. b. If the shipping type of the shipping method that is used on the line items is Delivery, all tax details in the Tax Schedule ID, which will default from the tax schedule assigned to the Ship To address of the customer, will be used to assess taxes for the Miscellaneous Amount of the Sales transaction.

Back to the top

---

APPLIES TO

•	Microsoft Business Solutions–Great Plains Receivables Management
•	Microsoft Business Solutions–Great Plains Invoicing
•	Microsoft Business Solutions–Great Plains Sales Order Processing, when used with:
Microsoft Dynamics GP 10.0 Microsoft Dynamics GP 9.0 Microsoft Business Solutions–Great Plains 8.0

https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?WTNTZSMNWUKNTMMYQLYTNSUKZPXKMUNVTOPTPLPOPRNKPNSUNNSSNUZKYLYVKVYVMWZNKSZWVWLMLWSUKVXLKQRZYUYKRXZO