Taxable Sales with Freight Charges: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for processing a taxable sales order and invoice with freight charges, and to understand (and change, if needed) the settings that affect the processing workflow.
Implementation Checklist
We recommend that before you initially process a taxable sales order, you make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist.
| Form | Criteria to Check |
|---|---|
| Enable/Disable Features (CS100000) | The Standard Inventory, Inventory, and VAT Reporting features have been enabled. |
| Order Types (SO201000) | The SO order type is active and has been configured, as described in Sales Order Types: To Configure the SO Order Type. |
| Tax Zones (TX206000) | The tax zone that will be used for the customer has been created, as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT. |
| Tax Categories (TX205500) | The tax category that will be used in sales order lines has been created, as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT. |
| Taxes (TX205000) | The value-added tax that will be used in sales order lines and applied to the freight charge has been configured, as described in Value-Added Taxes: To Create a General VAT and Exempt VAT. |
| Stock Items (IN202500) | The needed stock items have been configured and the needed tax category has been assigned to each stock item on the General tab. |
| Shipping Zones (CS207510) | The needed shipping zone has been created. |
| Ship via Codes (CS207500) | The needed ship via code has been created; on the Details tab, the Base Rate and Freight Sales Account have been specified. |
| Customers (AR303000) | The needed customer account has been configured and the needed tax zone, shipping zone, and ship via code have been assigned to this customer on the Shipping tab. |
Other Settings That Affect the Workflow
You can affect the workflow of processing taxable sales with freight charges by specifying additional settings as follows:
- To cause shipments to be created with the On Hold status (so that the user can verify them before processing them further), select the Hold Shipments on Entry check box on the Sales Orders Preferences (SO101000) form.
- To cause general ledger batches generated during the processing of sales documents to be posted automatically, select the Automatically Post on Release check box on the General Ledger Preferences (GL102000) form. For information on processing general ledger batches, see GL Transactions: General Information.
Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you process a taxable sale with freight charges by performing instructions similar to those described in Taxable Sales with Freight Charges: Process Activity.