MRP Sales Tax

You set up the MRP sales tax to calculate sales tax based on the MRP value and post the tax amount in the general ledger. The characteristics of the adjustment include:

• Adjustment Control Code on the Modify Adj. Controls form is set to Accrued to G/L.

• The Adjustment Options is blank.

• On the Price Adjustment Detail Revisions form:

  • The Basis Code field displays 8 (Add on User Program Amount).

  • The Object Library field displays M#.

  • The Factor Value Numeric field displays the rate for sales tax.

The system processes the MRP sales tax adjustment as follows:

• Uses the current price from adjustments as the MRP.

• Calculates the taxable price as MRP ÷ (1 + Sales Tax Rate).

• Calculates the sales tax as Taxable Price × Sales Tax Rate.

• Displays the adjustment on the Price History form, but does not apply the adjustment to the price.