PO Tax Jurisdiction Assignment Defaults to AP Invoice Entry

Overview:

The PO Tax Jurisdiction flows to the AP Invoice Entry from the Distribution (Job, WO, etc.) that will be charged, which defaulted to the PO.  PENTA compares the Tax Jurisdiction on the PO (committed tax amount) to the tax on the AP Invoice (actual tax charged by vendor).  Depending on PENTA's configuration (Option 154), the system will accrue any differences between the committed tax and actual tax.  The accrual is to the Tax Jurisdiction on the PO, unless the AP Invoice entry has the Tax Jurisdiction overridden.

Benefits:

The tracking of the Jurisdiction on the PO allows for the committed amount tax to be considered in Job Cost or other distributions.  When the actual tax is provided by the Vendor, the system will address any discrepancies, depending on how the variance threshold is set in Option 154.

Roles:

• Purchasing Coordinator
• AP Entry Clerk

Additional Content

• Knowledge Base Article: /wiki/spaces/KCSDEV/pages/5542246
• Inventory PO's use the Warehouse Tax Jurisdiction unless overridden.  Also, whether the purchase is taxable is determined as follows:
  • If you want to record an inventory distribution, enter the required fields on the primary tab.
  • Review the amount of tax to be committed, the tax-exempt reason code, and tax certificate.
  • Enter optional fields as needed.

  • Close the window to commit your changes.

    PO Primary Taxable?	If the Warehouse is:	If the Product Id is:	Then the default for the Taxable field on the distribution is:	Then the default for the Tax Exempt Reason Code on the distribution is from:
    PO Line Distribution	Taxable	Taxable	Y	----
    PO Line Distribution	Exempt	n/a	N	Warehouse information
    PO Line Distribution	Taxable	Exempt	N	n/a
    Y	n/a	n/a	Y	----
    N	n/a	n/a	N	The Primary tab

Location:

• Accounts Payable > Invoice & Credit Memo Entry
• Purchasing > Purchase Orders - Grid Options

Video: