Tax on cores sale but no tax credit on return

[B964]

First time I saw this.

Part sold with core charge and return on same original invoice. tax applied to part and core charge but not credited off of core return. Must be a settings error. I don't have direct access to a lot of our main system applications but trying to steer the person who does in right direction.

[B964]

Found the problem.

General Ledger tax groups.

Tax group definitions.

Check box for core returns.

Without that box checked it will tax the core sale but not credit tax on the return.

[wholesaleguy]

That is actually more common than not! Its driven by the state law, so make sure you verify with your states taxing guidelines before making the change!

`Ray

[fuzzmanmatt]

In Michigan, (I don't know anywhere else) the core is considered the same as a trade-in. Let's say a battery sells for $129+18 core. As far as the state is concerned, that battery costs $147, and you're paying the customer $18 to get their battery. I've almost had people throw things at me because of it, and have a notice printed and displayed because of that.

http://www7.dleg.state.mi.us/WebORRGSA/ ... inCode.pdf
Section R 205.15 Part 3