Sales (VAT) tax not calculated for purchase orders

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Sales (VAT) tax not calculated for purchase orders

Daniel Martínez-4
After struggling for the VAT to appear in purchase orders (it works fine
for sales orders), I have find this code in OrderServices.java

// don't charge tax on purchase orders
        if ("PURCHASE_ORDER".equals(orderHeader.getString("orderTypeId"))) {
            return ServiceUtil.returnSuccess();
        }

well, now this is it :) I am sure there is a good reason for it if
anyone would mind to explain ...

What would be the best way to include VAT in purchase orders?

Thanks,
--
Daniel
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Re: Sales (VAT) tax not calculated for purchase orders

David E Jones

Generally a vendor is responsible for calculating and collecting tax, so having the software do it for purchase orders doesn't make sense. In some cases you'd have to know a LOT about the company you are buying from, such as if they have a nexus where you are located, and so on.

Usually the tax will be manually entered on a PO based on what the vendor says, or it will only appear on the invoice when you receive it from the vendor.

-David


Daniel Martínez wrote:

> After struggling for the VAT to appear in purchase orders (it works fine
> for sales orders), I have find this code in OrderServices.java
>
> // don't charge tax on purchase orders
>         if ("PURCHASE_ORDER".equals(orderHeader.getString("orderTypeId"))) {
>             return ServiceUtil.returnSuccess();
>         }
>
> well, now this is it :) I am sure there is a good reason for it if
> anyone would mind to explain ...
>
> What would be the best way to include VAT in purchase orders?
>
> Thanks,
> --
> Daniel