How Do I Adjust Sales Tax Allocation on a Vendor Invoice?

While Auditing a Vendor Invoice, you may discover line items with erroneously applied and allocated Sales Taxes. After Allocation but before Audited, you can use this opportunity to designate them as taxable or non-taxable.

Changing a line item's taxability status will only affect how taxes are allocated. It will not adjust the tax line item total. Once the taxability changes are applied, the allocation of sales tax will be adjusted accordingly.

Here's an example of how to designate a line item as taxable or non-taxable.

1: In this example, we have two haul charges, a Franchise Fee, and a State Taxes line items.
2: Scroll down to the Sales Taxes and Allocated Values section headers and click the arrow to expand each pane to view further details.
3: Before we address the Sales Taxes pane, let's look at Allocated Values. Here we see the $100 Franchise Fee is evenly allocated across both hauls ($50 each). Since both parts of the Franchise Fee are currently taxable, the taxes applied to each fee portion are also applied to their respective hauls in addition to the taxes applied for the haul amounts themselves.
4: In this example, we've decided that only one haul's Franchise Fee portion is taxable. To make this adjustment we uncheck the TAXABLE box for the untaxable haul charge in the Sales Taxes section and clicked the Save Revisions button.
5: Notice that the total taxes and invoice total did not change. The only changes are in how the taxes are allocated.