Hi All,

I'm trying to make GST automatically be charged on orders for a particular customer. In our case, the GST taxable code is '1'.

I've made sure that the customer's default tax status is 1, and when I start the order, sure enough the order has a tax status of GST Taxable.

The problem occurs when I go into details and enter line items. I try and enter a part, and it always comes up as 'non-taxable' or default tax code of '0'. I've changed the category that these parts were in so that their default status is 1, but still the line items come up with a tax status of 0.

Any ideas?

Thanks!

Hi,

The default tax status for an item is stored with an item, not with the category. You'll need to change the tax status for each taxable item.

Hi Acrylon

What you have to understand is that the Default item tax status in Company Profile is used when setting up new categories (it becomes the Default tax status under Category Info), and the Category default tax status is used when setting up new items (it becomes the tax status under Units - Additional Information). Only the item tax status is used when entering an order.

It's a hierarchy of default settings. Is that clear?

Steve

If you have a large number of items, we suggest that you export the items out of IC, correct the item code status, say in excel, and them import back just the item number and the tax status code.

Call us if you need assistance.

Brian Stief
Stief Group
800-540-3164

The export them import worked great.

Thanks all!

Hi All,

I need to quickly revive this old thread.

We have parts that we manufacture and sell to BC, ON, MB, QB, NS, USA etc. Any tax status you can imagine.

If an order decides to charge tax based on the item, and not where we are delivering it to, how can I get Adagio OE to charge the correct taxes based on the customer tax code and status?

Thanks!

Adagio OrderEntry decides the tax rate for each jurisdiction (GST, PST, HST etc) based on a comparison of rates between the customer status and the item status. Whichever rate is lower will be the rate used for each tax jurisdiction.

Tax statuses for customers are stored on the customer master record and also on ship-to addresses. The tax status on the shipping address will always override what is on the customer - it currently cannot be set to blank - so if you want to ensure that the customer master tax status is used, then you must check that the tax status on every shipping address is the same as for the customer master.

As this is a technical support question, this thread will be moved there.

So if a customer doesn't have a ship to address then it just uses the tax code from the customer?

When you say it will 'always use the lowest' do you mean the lowest rate as a %?

Yes - no ship-to code on an order means that only the customer tax status is used because nothing else is available to override it.

Every order has a customer tax status, which defines a tax rate % for each jurisdiction. For example 5% for GST and 7% for PST and 12% for HST, or 0% if exempt for a particular tax. An item tax status is defined on every item or misc charge on an order, with similar rates and exemptions. For each item on an order, tax is calculated for each jursidiction by looking at the rates based on the customer and the item. If they are different, then the lower rate is used.

For example, a customer that is PST exempt orders an item that is fully taxable. GST would be 5% on both the customer and the item statuses, thus 5% GST would be charged. But because the customer rate for PST is 0% (and on the item it is 7%), the lower rate of 0% is used and thus PST is not charged for this item. Every item on an order undergoes all of these tax rate comparisons.

Setting up tax tables can be tricky. It is a matter of determining all possible ways a customer can be taxed or exempted and create customer tax statuses and associated rate. And a similar process for items.

Questions about tax table setup should be answered in consultation with your Adagio Consultant, who should be aware of the way your tax tables are configured and the nature of your business.