We have an issue with our sales order deposits that include sales tax. When we ship the order and the invoice is generated, the deposit is only applied against the base amount. It leaves the invoice open with the amount due equal to the sales tax. The balance of the deposit remains on the sales order. We then end up having to do a Deposit Billing Credit Memo to turn the deposit balance into a credit memo, which can then be applied to the open invoice.
Epicor Support suggested configuring the “Invoice Deposit Tax Treatment” in Company Configuration on the Modules | Finance | Accounts Receivable | Individual Deposit Invoice Tracking tab. They suggested a value other than the default “No Tax”. They could not offer a description of the choices other than what’s in the help. We tried setting this value to “Tax Shipment Net Movement” but it didn’t make a difference.
Does anyone have any suggestions as to how to get the system to apply the entire deposit against the entire invoice?
Yes. Two years after that post I finally figured this out. Here were my findings:
There is an option in Company Configuration that automatically checks the Ready to Calculate box in AR Invoice Entry. That option had been on for our main company, where we did not have the issue, since we started in Epicor. That option had not been enabled for our subsidiaries, where the issue resided, thinking that it was redundant and inefficient.
With Ready to Calculate defaulted to off, when an invoice was created, tax was not calculated, and deposits were applied accordingly (less tax). In subsequent steps, taxes were calculated but deposits were not automatically applied after that tax calculation. With the option on now, tax is calculated and then deposits are applied for the full amount.