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A
Abdallah A
November 1, 2024
Question

Purchase order to include VAT calculation

  • November 1, 2024
  • 1 reply
  • 0 views

Greetings,

I would like to understand how to include Tax (VAT) in the purchase order and calculate automatically

1 reply

S
ShangY
November 1, 2024

Hello, Abdallah, it's great to have you in our forum! Let's clear up a few things about adding Tax (VAT) to a purchase order.

First off, when you say "VAT", are you talking about Sales Tax? If that's the case, it's important to know that Sales Tax can only be applied to sales transactions like invoices or sales receipts. Since a Purchase Order is a non-posting transaction, there's no option to include sales tax in it.

Additionally, if you're looking to streamline your bill management, I recommend exploring QuickBooks Desktop's Accounts Payable workflows. You'll find some handy ways to handle bills, whether they're linked to purchase orders or not.

Let me know if you're referring to something else or if you have additional questions about adding Tax to a purchase order. I'm here whenever you need help. Have a great day!

A
Abdallah AAuthor
November 1, 2024

Hello ShangY

 

Yes VAT is sales tax but in our country is claimable from the purchases.

 

Got from other forums, guided to create an item classified as Other Charges and mapped to Tax Control Account.

 

So both Sales and purchases VAT are booked in 1 Tax account which at the end of the month the net off is either payable or claimable from Government

 

Its working fine

 

Thanks

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