Customer Order Tax Details

When a customer order is created through the POS, the NA localization records a detailed breakdown of the sales tax applied, broken down by tax jurisdiction and tax group. You can view this breakdown directly on the customer order.

View Tax Details on a Customer Order

  1. Click the icon, enter Posted Customer Orders and open an order.
  2. Locate the Order Line Tax Details Part factbox.

  3. The tax breakdown is displayed automatically; no manual action is required.

Note: The tax details are read-only. They reflect the tax calculated at the time of the POS transaction. To change the tax, the transaction must be corrected at the POS.

Tax on Non-Refundable Delivery Charges

Delivery and shipping charges on a customer order are non-refundable. When the order is posted, the charge is posted to its G/L account as a tax-inclusive amount. The NA localization then separates the sales tax from that amount, so the tax is reported against the correct tax jurisdictions.

For each tax jurisdiction that applies to the charge, the localization posts an extra entry that moves the tax amount from the charge's G/L account to the jurisdiction's Tax Account (Sales). The entry uses the customer order's Document ID as the document number and the description Customer Order - non-refundable charge tax reclass.

Example: A customer order has a delivery fee of 15.00 plus 2.25 tax. The order posts 17.25 to the delivery fee's G/L account. The localization then moves 2.25 from that account to the sales tax accounts of the applicable jurisdictions, so 15.00 remains as the fee and 2.25 is reported as sales tax.

The tax is separated only when all of the following are true:

  • The store uses sales tax.
  • The posted customer order has a Tax Area Code.
  • Every tax jurisdiction that carries tax on the charge has a Tax Account (Sales).
  • The tax has not already been separated for this order. It is posted only once.

Each charge line is calculated on its own tax group, so a taxable delivery fee and a tax-exempt handling fee on the same order are handled separately. A tax-exempt charge posts no tax entry.

Note: If a condition is not met, no error is shown. The order posts as before, with the charge left tax-inclusive. If sales tax for delivery charges looks wrong in the G/L, check the Tax Area Code on the order and the Tax Account (Sales) on each jurisdiction.

Prerequisites

  • Sales tax must be configured for the store: Tax Area Code and Tax Liable must be set on the Store Card.
  • Tax Jurisdictions, Tax Areas, and Tax Groups must be set up in Business Central.
  • The customer order must have been created through a POS transaction (not manually in the back office).

See also