No, we don’t have Avalara. Probably should.
And we don’t have Epicor Quick Ship or any manifesting add-on. We really should think about that. But we don’t have it.
Anyway, the question is, how do I make freight (a misc charge) to be non-taxable, tax exempt, whatever? I want no taxes on freight charges to our customers.
I followed KB0073140 on EpicCare*. It still applies taxes. (Expand for details)
What am I missing?
*EDIT: As best I could. It assumes manifesting.
I can try it that way again. I tried it at zero the other day and it didn’t work. So I went back to 5% since I figured I was modifying the EpicCare article too much. They tell you to use 5%, so I did this time.
I looked at the KB article. I never di have a good comprehension about how all the Tax programs (Type, Category, etc…) relate to each other. And since going to Avalara 5+ years ago, I haven’t had the need.
But looking at our settings with Avalara, none of the Tax Types (which Avalra creates on demand) have any exemptions added to them.
When we do order or invoice entry, we select the Tax Cat “Non Taxable Transaction” on a line. The Misc Charge is setup to use that Tax Cat too.
Looking at our Tax Categories, I see the following:
All the non-highlighted ones are used by Avalara (note the structured CatID). The two highlighted ones are ones we’ve manually entered. The NT one has no Tax Rates setup for it. So it calculates no tax.
I appreciate it Calvin. It sounds straightforward on your end. I think I’m just over my head on this.
Taxes generally have been working fine and I set all that up. (And most of our customers have a tax-exempt cert. anyway.) But the freight, I’m missing something. I’ll just have to reach out to a consultant or something.
Try making a Tax Category for “Non-taxabe Freight”, do not add any Tax Rates to it, and assign it the Tax Cat in the Misc Charge setup.
We don’t use Manifest, so maybe that’s where the extra hoops you have to jump through, come in.
I tried your suggestion just now. Still get tax on misc charges.
Something I find odd, is that ORDER HEADER misc charges still come through as a LINE misc charge on the invoice. I guess there is no way to add a misc charge to an invoice without the line??!!
But then order entry estimates the tax with the total amounts, so I guess that’s irrelevant about the line charge.
Correct. But you can tell if it was a Header Misc Charge, as the LineNum will be 0.
Where? In AR Invoice Entry?
InvMisc.InvoiceLine
Holds the misc charges for the Invoice.
There’s a field SeqNum, to separate the misc charges should you have multiple for a line (or header).
Maybe InvcTax does the same thing with setting the InvoiceLine to 0 when it applies to a Misc Charge on the header.
Well then I’m doing something wrong there because there are no zeroes for InvMisc.InvoiceLine in 3200 rows of misc charges.
Hmmmm … I know there was a time when I had to make a BAQ for invoices, and finding that a “line number” field was zero, was the key. Let me think about this some more.
It’s OK. We’re on a tangent. Don’t trouble yourself.
If you want zero rate, then in Product Tax category Maintenance select tax type and rate code having 0% tax. Then apply this Product tax category to miscellaneous charges in Miscellaneous Charge Maintenance.
If you want show as exempt, then create the product tax category without tax type and rate. In Tax type maintenance assign this product tax category as exempt. Similarly assign this product tax category in Miscellaneous Charge Maintenance.
Support gave me a different article today, KB0052942, and it worked.
It seems the difference is that I have to add the freight exemption to every single Tax Type in order to exempt that specific tax.
OK that seems a bit extreme.
About to jump on a call about this.
Yep that’s it.
Every “Tax Type” you set up in Epicor has to include the Product Tax Category for tax-exempt freight if you want to exempt tax on freight in all localities. That’s what I was missing.
(Or if some counties do charge tax on freight, then don’t add the exemption.)
And now I see that’s probably what you meant all along. Sorry that’s my fault for not understanding all of the moving pieces.
