The SALES TAX field group represents the tax treatment that will be applied to this vendor. It can be the sales tax, prices including or excluding sales tax, and the tax exempt number, if there is any. An explanation of each field in the SALES TAX field group is as follows:
- Sales tax group: This field represents the sales tax group assigned to this particular vendor, and this record will be the default value for all transactions that will be inherited from the vendor master data
- Price include sales tax: This field indicates that the invoice amounts should include or exclude sales tax
- Tax exempt number: This field is used for reporting and statistical extractions
Sales tax group can be set as the default at the vendor group level; just navigate to Accounts Payable | Vendors | Vendor groups. Also, it can be overridden by the user on the vendor form.
Setting sales tax at the vendor group level will cascade down to newly created vendors in this group. This ensures that the sales tax will be filled in automatically. On the other hand, it can be overridden on the vendor form or at the transaction level for exceptional cases. It is recommended not to leave the overwrite permission with the end users, to avoid issues in the posted sales tax.
Setting sales tax at the vendor group level will cascade down to newly created vendors in this group. This ensures that the sales tax will be filled in automatically. On the other hand, it can be overridden on the vendor form or at the transaction level for exceptional cases. It is recommended not to leave the overwrite permission with the end users, to avoid issues in the posted sales tax.