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Settings for taxes amount of partially shipped items

  • May 7, 2024
  • 4 replies
  • 78 views

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Hi There,

Does anyone know if there is a setting that just trigger the system to apply the taxes on partially shipped items?  We have orders on AR accounts, and there are scenarios where we only partially ship the items and the rest will be back order, but sometimes customers will cancel the back-order items.  However, the system will apply the taxes amount for the whole order when invoicing.  Hopefully, there is a way to set so that the invoice only includes tax amount for those shipped items.  We are using 2023 R2 version.  Thanks...

Best answer by krausef77

If you go through the Shipment Screen after confirming the Shipment for a Partial Qty the Taxes will only be calculated for the Shipped QTY. If you go through the Sales Order itself, it will always take the whole Order, yet through the actual Shipment it will calculate it based on what’s actually on the Shipment.

4 replies

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  • Semi-Pro II
  • May 7, 2024

Are you invoicing based on the Shipment or the Sales Order?


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  • Author
  • Jr Varsity II
  • May 7, 2024

Hi @krausef77 we are invoicing based on the Shipment.


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  • Semi-Pro II
  • Answer
  • May 7, 2024

If you go through the Shipment Screen after confirming the Shipment for a Partial Qty the Taxes will only be calculated for the Shipped QTY. If you go through the Sales Order itself, it will always take the whole Order, yet through the actual Shipment it will calculate it based on what’s actually on the Shipment.


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  • Author
  • Jr Varsity II
  • May 7, 2024

Thank you @krausef77, I will check it out.