- Is there a way to have the system calculate sales tax by the cost of the item instead of the sale price of the items?
- Yes, first you will need to enable a company setting. Navigate to File>Company>Master and Find the "Prompt For Use Cost Tax in Sales Order (Y)es/(N)o" and set this to Y. Now, you will see a checkbox in the header tab of the sales order called "Use Tax". When this is checked off, the order will calculate tax based on the cost of the items instead of the sales price.
Note: The Sales Tax Journal report has a Use Tax reporting functionality to give you the ability to run a separate report based on orders taxed using this feature.
