How to add Sales Tax onto a Purchase Order

Modified on Fri, 22 Sep 2017 at 01:51 PM

There may be a time when a Vendor will charge you sales tax on your Purchase Order(s).

There are two ways to handle this:

  1. The easiest is when creating your Item/Component ? just add the sales tax amount into the cost of the component.
  2. The second one is a bit harder, but when done properly, will show the Sales Tax separately on the PO.

The below instructions will walk you through the necessary changes to show Sales Tax on your PO.

First you will need to change one of your Component Types to be set to Sales Tax.  Please follow the link here for full details on how to do this.

Once you have completed the Steps in the article above you will have settings similar to those below:

Setting the PO Style to Total is suggested.

If the Project you wish to add Sales Tax to a PO has already been created, then you will ALSO need to change the Sales Tax Component Title on any of these Existing Projects.

Highlight the Project and Choose Edit.

Click on Advanced/Mark-up

Go to the PO tab.

Change the Title for the Sales Tax Type Component to Sales Tax and Change the Style to Total.

Once the Company and Project Settings are changed, you will need to add the Sales Tax Component to the Item.

You will add this like any other component is added.

The Type you choose from the drop down is Sales Tax.

You may want to uncheck the Taxable box for the sales tax component because the Component is Sales Tax itself already.  However, you should ALWAYS check with you CPA to make sure you are handling sales tax properly, particularly when the vendor includes tax on your PO, as the laws are different from state to state.

Once added the Sales Tax component will show on the Purchase and Work Order Components grid of the Item window.

You can then Add a New Purchase Order and tag this component to be included on it.

The Purchase Order will show the Sales Tax Component down at the bottom in the Totals, as seen in the example below.