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[Greg Enns]

How can we handle tax when there is a Service Contract with Service Items located in multiple states? (and of course a taxable customer)

The invoices that BC creates to bill against a service contract, are for all Service Items on the Contract. But if the customer is taxable, and some of those Service Items are in different states–or even different counties–then the tax on the invoice is going to be wrong.

Ideas, anyone?

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Greg Enns
ERP Coordinator
Technical Prospects
Appleton WI
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[Steven Chinsky]

Greg,

That is an ugly issue. You have a customer, say being invoiced in New York, but have specific serviceable items in PA, OH, and TX. This changes the entire Service Contract taxability crossing multi-state lines. The only solution I can think of is on the Service Item itself. Under each Service Item, setup the Ship-to Code to the specific Tax Area Code designation and whether Tax Liable. This should allow for each Item to denote Taxable and Non-Taxable under the entire Service Contract. I have not had time to test this but as with Sales Tax on Sales Order, the Ship-to address defines the Taxing State/Jurisdiction. Try this out and if I have time this weekend I will as well.

Thank you,
Steve

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Steven Chinsky
Manager
Wipfli
Mansfield MA
NAVUG/BC Programming Committee Member
NAVUG All-Star, Granite Award Recipient, MCP, DCMP
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[Greg Enns]

Thank you for helping me think through this one, Steve.

It seems to me that as soon as you start having multiple Service Items on a document, they must have the same “Ship-To” Address, because that’s how tax gets calculated. 

Where this becomes the biggest issue for us is on the system-generated “Service Contract Invoices”. This is where we bill the customer their monthly/quarterly/annual bill for the contract. NAV creates a single invoice for the contract, with 1 GL line for each Service Item on the Contract. When each of those service items are located at unique addresses–and those addresses have different tax rates–It doesn’t work. 🙁

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Greg Enns
ERP Coordinator
Technical Prospects
Appleton WI
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[Steven Chinsky]

Greg,

Yes, this is the big unknown, as I have not tested the theory/process, but it was a idea to look into. Given the limitation I would say that working with your Partner to write-up a customization would solve the issue, if you want to stick with a single Service Contract Invoice, with multiple Service Lines both taxable and non-taxable.

If you need help explaining to your Partner, I am available to help you.

Thanks,

Steve

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Steven Chinsky
Manager
Wipfli
Mansfield MA
NAVUG/BC Programming Committee Member
NAVUG All-Star, Granite Award Recipient, MCP, DCMP
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