Dynamics GP Sales Tax with no Shipping Method
Maintaining Sales Taxes in GP can be a daunting and time consuming task. If the Shipping Method (delivery or pickup) does not affect the tax rate applied to a customer then you can save some time by turning the option to tax by “shipping method” off, which is on by default. This assumes that the customer will be charged the same Sales Tax regardless of the shipping method on the sales order. The following steps will walk you through the process.
Company Options
Uncheck the option, Use Shipping Method when Selecting Default Tax Schedule.
Tools>>Setup>>Company>>Company, Options button
Use Shipping Method when Selecting Default Tax Schedule
Specify whether or not you want to use the shipping method when selecting the default tax schedule on a transaction. Microsoft Dynamics GP calculates taxes at the point of exchange, using the shipping method assigned to a transaction to determine the point of exchange. The shipping method will determine which tax schedule appears as a default schedule for the transaction. If you decided not to use the shipping method to determine the default tax schedule, the tax schedule assigned in the Customer Maintenance window will be the default tax schedule.
SOP Setup Options
Select Advanced
Tools>>Setup>>Sales>>Sales Order Processing, Options button
Setup the Tax Detail for each Tax jurisdiction you do business with and are responsible for collecting Sales Tax
Tools>>Setup>>Company>>Tax Details
Setup the Tax Schedule for Ship To Address and Inventory Items
Tax Schedule for Ship to Address
Tools>>Setup>>Tax Schedule
Create a Tax Schedule to be assigned to the Customer Ship-to Addresses
Add from the Available Tax Detail IDs to create each Tax Schedule
Tax Schedule for Inventory
Tools>>Setup>>Tax Schedule
Create a Tax Schedule to be assigned to inventory items that will be taxed
Add from the Available Tax Detail IDs to create an Inventory Tax Schedule.
Assign Tax Schedules to Customers Ship-To Address and Items
Assign Tax Schedule to Customer Ship-To Address.
Cards>>Sales>>Addresses
Using the tax schedule created for each Customers, assign the tax schedule to each Customer Address.
Assign Tax Schedule to Items
Cards>>Inventory>>Item
Sales Tax Option: select Taxable,
Tax Schedule ID: using the tax schedule ID for inventory items, assign this tax schedule to each taxable item using the lookup.
Conclusion
The normal rules of Tax Schedules still apply. If a Tax Schedule is assigned to the Customer Shipping Address and the details of that Tax Schedule is also on an item, the sales line will be taxed. Regardless of the Shipping Method used, eliminating the confusion and concern over whether the method was “pickup” or “delivery”. This works great if you don’t need to use shipping methods or if the tax rate does not change based on shipping method.