Sage 300: Urgent attention is needed on Account Receivable tax calculation after discount is given. In the normal logic, Tax is supposed to calculate on the Net of discount as it is perfectly done in the Order Entry(OE). But in the Account Receivable Invoice, Tax calculate on the document total instead of Net of discount. And as a result of that Tax is overstated.

When using AR - Invoice in Sage 300, and the transaction involves discount , the tax calculate on the document total instead of the Net discount amount ( Document total minus discount given). This eventually leads to over stating of tax amount and as a result of that increase correction of error, manual calculation in sage 300 and inconvenience in Account Receivable Invoicing..

by: Derrick A. | over a year ago | Financial Management

Posted June 2022

Wow, long title :)

by: William W. | over a year ago
HI Derrick, I have found that:

If the discount is applied during invoicing the tax will be adjusted.

If the discount is created during the receipt then the Tax is not adjusted. This is a ‘simple discount’ option, not a full new document. So yes, a manual change is needed

by: William W. | over a year ago

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