Entering Taxes Manually

Order Entry lets you specify on individual orders and invoices whether taxes should be calculated automatically by Order Entry or entered manually.

If you wish to enter tax amounts manually, do not select the Calculate Tax option.

Note: When you enter taxes manually, you must specify, for each authority within the tax group, both:

• The total tax amount, and

• The tax amount for each detail on the order or invoice.

Enter tax totals for each tax authority

You can enter the total tax amount for each authority and then enter the tax for individual details, or you can enter the taxes for each detail first and then enter the total amounts. Note that the total tax amounts must equal the sum of the detail taxes entered for each authority.

To enter the total tax amount manually

1. From the O/E Transactions folder, choose Order Entry.

2. On the Order tab, clear the Calculate Tax option if it is selected.

3. Enter the order, including item details, as usual, but do not post it yet.

4. Click the Taxes tab.

5. Enter the tax base and total tax amounts for each tax authority.

Note that you can also enter total taxes manually on the Taxes tab of the Shipment Entry form and the Invoice Entry form.

Enter taxes for individual items

You can use the Distribute (Dist.) Tax button in the Taxes tab to automatically prorate and allocate to the document details the total tax amount you have entered manually, or you can enter tax amounts manually for each detail.

To distribute the tax amount manually

1. On the Order tab of the Order Entry form, on the Shipment tab of the Shipment Entry form, or on the Invoice tab of the Invoice Entry form, highlight the detail line for which you want to adjust the taxes.

2. Click the Item/Tax... button or press F9. Order Entry displays the detail Items/Taxes form.

3. In the Tax Base and the Tax Amount columns, enter the tax base and the tax amount that you have calculated for the detail.

4. Repeat steps 2 and 3 for each detail item on the document, ensuring that the sum of the taxes for the details equals the total tax amount you entered in the Customer Tax Distribution form.

5. Check the amounts carefully before posting.

Allocating taxes manually to partial shipments

If you partially ship and invoice an order for which taxes have been entered manually, Order Entry displays a message asking whether you want the program to recalculate taxes for you.

You must decide whether to recalculate taxes for the invoice and the order as follows:

• Choose No if you want to post the invoice without recalculating taxes for the invoice and the order. The invoice will be posted with the full tax amounts specified on the order.

• Choose Yes if you want the program to recalculate taxes for the invoice (for the items shipped) and for the order (for the items remaining on order).

• Choose Cancel if you want to cancel posting and return to the transaction entry form to enter recalculated taxes manually.

For more information about sales tax calculation, see Calculating sales taxes.