Tax Liability for a AP Invoices

Hello Everybody,

Does anybody know what I can do to fix this issue or possibly explain how Sage 300 CRE Accounts Payable Tax Liability is calculate? The scenario below seems to be happening with all of the invoices we enter.

Accounts Payable Tax Rate setup is set to 7.0 for Indiana Sales Tax

Below is a picture of what our AP Invoice Tax Settings are

When an invoice is entered for $138.00 the system calculates the tax as being $9.03 (6.54% Tax Rate) rather than $9.66(7% Tax Rate). Please see below

I appreciate any help given.

Thank you

  • 0

    "Amount" is after-tax amount. If you want to enter the pre-tax amount during invoice entry, you have to turn on the pre-tax field in Invoice Settings>Distribution settings and/or Additional Settings (for the Invoice level). 

  • 0 in reply to SherryR

    SherryR, Thank you for your response, this did help in instances where we are charged tax directly on an invoice. However, it almost seems like we would need the option to do either way. Some invoices we get charged tax directly and some invoices we are liable for paying tax on our own. Maybe we are not entering in that type of invoice correctly, I am unsure.

    Below are screen shots of 2 examples of scenarios we run into.

    The first screen shot item works well however that invoice had the tax included on the invoice. We entered the subtotal of the invoice in the Amount column then the tax line in tax column.

    On the second screen shot, the invoice does not include tax and it has freight charges as well.

    The total invoice with Freight is $2741.19, However I could be wrong but I did not think Freight is usually taxed. The $280.00 on the second dist. line is freight. The software ensures the pre-tax column and tax liability column create a sum of the total invoice amount which in this instance the pre-tax column should equal the total invoice since taxes are not included on this invoice.