Tax application of the same item based on intent

[zee]

We have a situation where we would like to give item 123 for free $0.00 and not charge the customer for the use tax. The same item on another occasion with the same customer we may want to charge tax. Any suggestion on how to handle it.
All input is be appreciated

 

[Mike Dupaix]

zee,
As long as the price of the item is $0.00, there is no
tax added even if the item and customer are taxable.
You need to override the price during order entry or
change the price and tax amount before invoicing.
--- zee <[email protected]> wrote:
http://www.jdelist.com/ubb/showthreaded.php?Cat=&Board=Apps&Number=44862


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[sean_gilbert]

Since the same item and customer combination have different requirements at different times I believe your only choice is to make a decision at Sales Order Entry.

In other words you could use advanced pricing in conjuction with the PC1 field in sales order entry. Create two advanced pricing adjustments one that will give a 100% discount off the base price when you enter some code (ex NT - 'No Tax') or (UT - 'Use Tax') in the PC1 field at order entry. And a second adjustment that when you enter the 'UT' code activates a non-taxable type 6 adjustment that will calculate your tax rate on top of the base price and include it as a line on the invoice.

I'm no tax expert but if you don't need to charge the use tax to your client but only one to account for it in your books you could use a GL accrual adjustment.