Understanding Taxed Prices for Sales Orders

If you use taxed prices for sales orders, the system displays item prices that include taxes. You can either enter the taxed prices or allow the system to calculate the taxed prices, depending on the information that you enter and the type of sales order.

If you work with taxed prices for sales orders, you should review the following field definitions:

• The taxed unit price is the price plus tax for one unit of an item.

• The taxed extended price is the price plus tax for the shippable units on the line.

• The unit tax amount is the tax amount for one unit.

  The system calculates this value automatically.

• The extended tax amount is the tax amount for shippable units on the line.

  The system calculates this value automatically.

For example, if the base price of a unit is 14.25 and the tax rate is 7.3%, then the taxed unit price is 15.30. The taxed extended price for 7 units is 107.10. The system uses the existing tax calculation logic to determine these values.

The system uses the taxes calculated during sales order entry in downstream processes, such as the Sales Update program (R42800). Downstream sales order reports, such as the Print Pick Slips report (R42520) and Print Invoices report (R42565), display taxed prices if they are on the sales order, but the system does not recalculate the taxes.