Taxes on PO Invoice not posting to inventory

How would you use landed costs if the AP Bill you are entering includes the tax that is payable to the vendor (the invoice total to the vendor includes the sales tax)? How would the landed  cost functionality add that total onto the original AP Bill?

We are trying to accomplish the same thing if you use landed cost you would have two bills for the vendor

dboes - are  you able to get sales tax to calculate on an AP Bill when you are paying the vendor the tax? Not use tax, but the sales tax that is charged.

Nothing automated we can calculate each line item individually or add it as a separate line item but then it doesn’t get added to the cost of an inventory item. We are looking at the landed cost option but it’s pretty clunky 😒  

Our company is just starting to use Acumatica, I am shocked to see the hoops that AP has to go through to add sales tax.  We are also looking at using the landed cost and it does seem to be quite clunky. What I find interesting, is how Acumatica “assumed” companies would not have invoices that included sales tax. It seems that it should be a simple matter to add that option for their clients.

What I discovered is that I have many more options by enabling VAT tax. Setting that up has worked for some companies. VAT tax is Value added tax. There are many options when setting up a tax code as VAT which could impact reports. I personally have made sure that the companies are not using VAT tax in any other way and had them filter out VAT tax on sales tax reports used for state reporting.

I hope my ‘work around’ helps.

slottkel25,  when you use this workaround does it get added to the cost of the inventory? This is the biggest issue.

No - I have not figured that part out yet… I was just happy to get it to actually calculate :) 

The posting is my next obstacle but I’m sure there could be a customization since we can get the tax to calculate - which sounds stupid to do for basic functionality - but we work through the features and the limitations. 

One work around my client may do for their expense items is to create a GI to show the expense account of the line items and tax amount, then upload that into a GL transaction monthly OR pull the tax information by item number and receipt number (for PO receipts) and upload into an inventory adjustment. Neither of these very efficient, but hoping to ease the pain of manual calculation until a better idea comes up. (baby steps i guess)

We have been testing this using landed cost you have to mark all the vendors as landed cost vendors.  Then set up a landed cost code with the allocation method by cost.  From the receipt you then choose

Enter Landed Costs and select the vendor.  use the tax cost code that you set up to allocate by cost.  Enter the tax amount. and Release then enter the bill.  From the bill you would then add the Receipt lines.

This seems to work except for Project Dorp Ship PO’s we get an error saying the Receipt total amount is  equal to zero...we have a case open on that.

If it is a normal PO it seems to work just very clunky! 

Oh I see.. thank you so much for the information. Cumbersome for sure.

I appreciate your help!

dboes14,

Did they resolve your error saying the Receipt total amount is  equal to zero?  I am getting the same error and couldn’t find anything in known issues.  TY

no Acumatica told us to record the landed costs separately with an AP Bill…. That dose not really work to add the costs to the inventory.  ☹️

oh no!, thanks for the response.  That is not going to work for my client either. 

Considering Acumatica’s Landed Costs feature were clearly not designed for human use, I would recommend just using a negative discount % as the tax % in your Purchase Order.

Then just tailor reports afterwards to display the discount % as the tax %.