sales tax issue - Double counting items as two different classes

2020  year's sales tax was easy. I just ran the tax tracking report for the relevant fiscal periods and sort by tax class, which for us is 1 for taxable items and 2 for non-taxable. 

But this year, the same report for both this year and last double counts non-taxable items as taxable. So, labor, for example shows up as taxable and non-taxable, which messes up the totals. I have Sage 300 2018, and wonder if anyone else has seen this type of thing. 

  • Do you have mixed tax lines?  Ie that some lines on the same invoice are taxable and some are not?
    If so, it puts the total of the invoice in both tax classes, always has.
    If all the lines on an invoice are of the same class it puts them in one section but if you have an invoice with multiple classes, it repeats the entire invoice amount in each class.  The tax amount is correct but the total invoice amount is not.

  • in reply to Eva Paterson

    Yes, labor and materials for example. Yes, the tax amount on the invoice is correct, but the reported amount in tax tracking is not correct. I may have always segregated invoices by tax class and stopped doing that a few years ago. This is not a report that is "correct" or sensible, the way it works now. How did it get justified to do it this very strange way by the developers? I mean why even have a "tax tracking report" if it is going to come up with the wrong answer?

  • It's been wrong since the beginning, i think they justify it to say that's the invoice amount so if you're looking for the invoice, you can find that amount. It's wrong. We usually adjust the report and put an additional column in to show the correct amount so that the invoice amount that the tax relates to is shown.