Purchase Order Parts being set as Taxable

I have random parts on POs that are set as taxable. Cant figure where this is being set. Any ideas where I can look?

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Have you already found the section “Taxable Check Box Processing Hierarchy” in the online help?
If not, it’s on the - PO Lines - Detail Fields sheet, might give you some ideas.

There is a new tax under Company Config > All Modules > Taxes : PO Lines Taxable

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I couldn’t find it in our 10.0.700.4 LIVE help, but did in our 10.2.200.15 test environment:

Taxable Check Box Processing Hierarchy

To determine if the purchase order detail line is taxable, the Epicor application uses the following processing hierarchy. As soon as a condition is satisfied in the hierarchy, the Epicor application sets the Taxable check box accordingly and stops further processing of the remaining steps.

  1. It first verifies if a tax category code has been selected for the purchase order detail line in the Tax Category field. If a tax category entry exists, it determines the setting of the Internal Use Tax check box for the assigned tax category in Product Tax Category Maintenance .
  • If the Internal Use Tax check box is cleared for the tax category in Product Tax Category Maintenance, the Epicor application clears the Taxable check box for the purchase order detail line (sets the taxable status to non-taxable). * If the Internal Use Tax check box is selected, it selects the Taxable check box for the purchase order detail line (sets the taxable status to Taxable)* It a tax category code entry does not exist, it determines if there is an entry in the Tax Liability field in the Purchase Order > Header > Tax sheet.
  • If the Tax Connect Calculation check box is cleared for the tax liability code in Tax Liability Maintenance, the Epicor application selects the Taxable check box (sets the taxable status to taxable). * If the Tax Connect Calculation check box is selected, it clears the Taxable check box (sets the taxable status to non-taxable).

Note: This behavior may seem counter-intuitive, but when the Tax Connect Calculation check box is selected in Tax Liability Maintenance, and Tax Connect is enabled in the Epicor application, it signals that the tax amount for a transaction detail line is being calculated by the third party Avalara® AvaTax®. In this case, the Taxable check box is cleared to designate that tax calculations will not be performed internally in the Epicor application. Conversely, if the Tax Connect Calculation check box is cleared, the Epicor application selects the Taxable check box to designate that tax calculations will be performed internally, and not in Avalara AvaTax.* Finally, if it is unable to determine a default setting by this point, it sets the Taxable check box accordingly (selects or clears it), based on the setting you designate for the associated company in the PO Line Taxable check box in the Company Configuration > Modules > Materials > Purchase sheet.

Related information

Company Configuration > Modules > Material > Purchasing - Default Line Taxable

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