Wholesale Price

Enter the wholesale price for one unit of the item. This field is enabled if the Use Wholesale Price field on the Tax Systems form is selected.

The system uses the wholesale price for calculating sales tax on the item. If you leave the field blank or enter a zero or negative value in this field, the system will ignore the value and use the quantity, discount, and unit price on the order/estimate line as the tax basis.

If you enter a positive wholesale price, the system uses the following formula to calculate the tax basis:

TB = QTY * WP

• TB = Tax Basis
• QTY = Quantity (on the Order or Estimate)
• WP = Wholesale Price

When the customer uses a non-domestic currency, the system calculates the tax basis using the following formula:

TB = QTY * WP * CSER

• TB = Tax Basis
• QTY = Quantity (on the Order or Estimate)
• WP = Wholesale Price
• CSER = Currency Selling Exchange Rate

In either case, the system multiplies the tax basis by the tax rate. The system draws the tax rate from the tax code record for the item.

The Wholesale Price and Tax Code fields also appear on the Item Price List report and you can adjust them using the Change Item Price utility. The Cost Markup feature does not apply to this field.