Re: Taxable Freight? -- BPCS-L

Nice that their customer was nice enough to bring this to your client's
attention.  Most would have gone on paying the lower amount.

An idea you may pursue:
In OLM, you can mark up the freight by a percentage.  (at the freight terms or
at the ship to level)  This percentage could be set to account for the tax
percentage.  Based on the freight terms, you can create a separate invoice or a
separate line item for the freight amount.  A customer / customer ship to note
might identify on the invoice that the freight invoice reflects a X% increase to
cover tax requirements.

Just one thought that might work.
Bob Benton
312-474-7381





"Devin Bowen" <devinbowen@hotmail.com> on 02/08/2001 01:45:56 PM

Please respond to BPCS-L@midrange.com

To:   BPCS-L@midrange.com
cc:    (bcc: BOB BENTON/SSA/US)

Subject:  Taxable Freight?



v6.1.00 AS/400 CS - Basically Vanilla

One of our largest customers (a multi-national supermarket chain) recently
started remitting amounts in excess of the amounts we were invoicing them.  When
asked why their payment amounts did not match our invoice amounts, the customer
replied that it was because we were not charging them tax on freight to certain
states (WA is one).  This was news to me - I had never heard of freight being
taxed in the US.  They are now complaining that our invoices are not correct and
they want us to include taxes on freight so they can just pay invoice amounts
(w/out calculating the amount and remitting more than the invoice amount).

We currently do not use OLM and just use the freight bucket on the order header
to charge freight.  We've used special charge lines for freight in the past (and
these could have a tax code in them to result in freight amounts being taxed),
but this is less desirable.  The standard invoice shows freight after the
subtotal if it is placed in the header (what this same cutomer says they want),
but it shows before the subtotal like regular product lines if placed on as a
special charge line (not wanted).  Also, adjusting the $ amount on a line item
(amount is not known until time of shipment) in invoice release is a pain since
the line could be # 100 (page down . . . page down . . . page down . . .) so a
header freight amount is easier in this respect as well.

We're trying to avoid OLM (not even sure it handles this) a mod to the invoice
program or other BPCS programs and have this requirement handled "automatically"
in BPCS (if it is a requirement).  Has anyone else had to deal with this "tax
requirement"?  SSA Helpline hadn't heard of this as a requirement or had other
clients asking about how to handle it.

If you have to deal with this, how are you handling it in BPCS?


Thanks,

Devin<br clear=all><hr>Get your FREE download of MSN Explorer at <a href="
http://explorer.msn.com">http://explorer.msn.com</a><br></p>

v6.1.00 AS/400 CS - Basically Vanilla

One of our largest customers (a multi-national supermarket chain) recently started remitting amounts in excess of the amounts we were invoicing them. When asked why their payment amounts did not match our invoice amounts, the customer replied that it was because we were not charging them tax on freight to certain states (WA is one). This was news to me - I had never heard of freight being taxed in the US. They are now complaining that our invoices are not correct and they want us to include taxes on freight so they can just pay invoice amounts (w/out calculating the amount and remitting more than the invoice amount).

We currently do not use OLM and just use the freight bucket on the order header to charge freight. We've used special charge lines for freight in the past (and these could have a tax code in them to result in freight amounts being taxed), but this is less desirable. The standard invoice shows freight after the subtotal if it is placed in the header (what this same cutomer says they want), but it shows before the subtotal like regular product lines if placed on as a special charge line (not wanted). Also, adjusting the $ amount on a line item (amount is not known until time of shipment) in invoice release is a pain since the line could be # 100 (page down . . . page down . . . page down . . .) so a header freight amount is easier in this respect as well.

We're trying to avoid OLM (not even sure it handles this) a mod to the invoice program or other BPCS programs and have this requirement handled "automatically" in BPCS (if it is a requirement). Has anyone else had to deal with this "tax requirement"? SSA Helpline hadn't heard of this as a requirement or had other clients asking about how to handle it.

If you have to deal with this, how are you handling it in BPCS?

Thanks,

Devin

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