If I have a stock item that I purchase and sell in the same form, the purchase of that item is tax exempt but is taxable when I sell it. How do I set up a stock item so that sales tax isn’t added onto the purchase order but is taxed when its on a sales order?
Answer
Tax Catagories of Stock Item that is Purchased and Sold
Best answer by JohnMichels
Processing Purchases with Sales Taxes
If the tax is inclusive (purchase price= item price + tax), the setup is different as the tax needs to be “extracted” from PO line price.
Processing Purchases with Inclusive Sales Taxes
Hope this helps
Processing Purchases with Sales Taxes
If the tax is inclusive (purchase price= item price + tax), the setup is different as the tax needs to be “extracted” from PO line price.
Processing Purchases with Inclusive Sales Taxes
Hope this helps
+6
Contract for hire: https://www.linkedin.com/in/jesse-houser-052817b6/
+6To add onto above, tax is only applied if the tax rate is associated with both the Tax Category of item and tax zone on customer / vendor profiles.
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