3 Replies Latest reply on Mar 28, 2007 1:55 PM by Kathleen Johnson

    Use Tax

    Patti Bennion

      Has anyone been able to get use tax working? I've tried just about everything I can think of and it either does nothing or treats it as sales tax. Any ideas would be appreciated. Thanks!

      Patti

        • 1. RE: Use Tax
          Idit Frydman Saguey

          Hi Patti
          Make sure that on the Admin>system initialization>Accounting Data, the Use Tax box is checked. this will enable use tax in the DB. Also make sure the WH is also checked as Use Tax...
          idit

          • 2. RE:Use Tax
            Patti Bennion

            Hi Idit,

            I had checked that setting already. The problem is that nowhere in the documentation does it state that you must use AP item invoices in order to utilize the use tax functionality for purchases. Since we are more of a distribution business model than a manufacturing model, we opted to only create items for products we resell. We use service invoices for everything else so that we don't have to create and maintain a bunch of internal item masters. It would be nice if the documentation could be updated to indicate use tax is only applicable if you use item masters. That is not an obvious fact with the current documentation.  To assume that service invoicing is only being used for true service invoices rather than goods invoices is a naive assumption.

            Thanks.

            Patti

            • 3. RE:Use Tax
              Kathleen Johnson

              Any chance SAP is considering changing the requirement of use tax only being attached to an inventory item ?   We have many "services" provided from out of state that we are required to pay use tax on.  To use a "generic" item looses any possible audit trail.  To set up new items for each situation is time consuming.  It is our preference to keep our inventory to items we buy for resale.

              We have circumvented the issue by adding  two lines to the a/p invoice - one increases the associated expense and the second credits the expense to a separate balance sheet account for sales tax - use tax.  This separartes it from our normal sales  tax collected from customers. Also, means you have to remember to consider it separately  for sales tax payment submission.