Correcting the taxing jurisdiction for DO PO and WT lines

If you are using the Tax Interface, the CR Tax Jurisdiction functionality is accessible only if you create a Correction (CR) order for an invoiced Direct Order (DO) purchase order (PO) or DO warehouse transfer (WT). Use the CR Tax Jurisdiction function to correct orders where the tax was incorrectly calculated by creating a Correction (CR) order to reverse (debit) the incorrect tax amount, and create a new line (credit) to charge the correct tax amount.

For example, instead of using the address where the order was placed, the address where the product is drop-shipped from (either the vendor or warehouse) is used. No change is made to the original sales, purchase, or warehouse transfer orders. The customer is billed for the difference if the new tax amount is higher, or receives a credit or refund if the new amount is lower.

If you require a purchase order for a customer, the Customer PO field must be added to the Sales Order Entry-Initiate page using the Personalization feature.

Note: The intent of this procedure is to, first, back out the tax that was incorrect, and second, apply the correct tax. Some corrections may require a variation in the steps. For example, depending upon the situation you are correcting, you may be required to specify a DO PO number (step 10) immediately after you specify a debit line (step 7).
  1. Select Sales > Entry > Order.
  2. Select Correction in the Order Type field.
  3. Specify the warehouse for the original order.
  4. Specify the customer or ship to number.
  5. Click Next.
  6. Specify a debit line with a labor product, such as Tax Adjustment, and the net amount of the line(s) being corrected.
    Note: Use a labor product to complete this correction without affecting inventory.
  7. Click Add.
  8. Specify a credit line with the same labor product. This line is used to charge the correct tax amount.
  9. Click Tax Jurisdiction, and then specify the appropriate number.

    For a DO PO, select Purchase Order and then specify the DO PO number.

    For a DO WT, select Warehouse Transfer and then specify the WT number.

  10. Click OK.
  11. Click Continue.
  12. Click Finish to complete the correction.
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