Apply Tax to a PO

You can only add tax to POs in the New state. The Apply Tax feature adds sales tax.

You can add either use tax or sales tax, but not both types of tax. Use tax is a state tax on goods purchased in another state for use in the taxing state. Verify that you're using the correct type of tax. See About Use Tax for more information.

If you add or edit line items after you've added tax, the tax line item account codes won't be re-allocated to reflect any additional account codes or changes in quantities or price. You can delete the tax line item and then add it again to get the system to re-calculate the tax account code allocations based on the new information.

Apply tax

  1. Select Purchase Order from the Purchasing menu. The Purchase Order window opens.

  2. If needed, select the vendor to shorten the list and make it easier to locate the PO. You can enter the vendor name in the Quick Search field or use the pinned Ordering Vendor filter.

  3. Select a PO in the New state, and click the Edit button at the bottom of the window, or click the PO Number link. The Purchase Order Details popup opens.

  4. Click the Apply Tax button at the bottom of the window. The Apply Tax window opens displaying the default tax. The default is calculated by multiplying the tax rate for each line by the estimated cost for that line and then adding the taxes for all lines.

  5. Enter the Tax Amount if it should be different than the displayed amount, and click OK. You'll be notified that the tax was applied successfully, and the Tax line item will be listed in the Order Items grid in the PO Details window.

 

Return to Add Items to a PO

Return to Create a PO

Return to Purchase Order Overview