In some jurisdictions, companies are subject to self-assessed purchase taxes. An example of this in the United States is Use Tax. Use tax is a variation of sales tax that is paid by a company when it retains untaxed goods instead of passing them through to customers. Since the company is the final user, they are responsible for paying the tax.
Dynamics GP doesn't handle self-assessed taxes automatically, but built-in Purchase Tax functionality and negative taxes can address this. In this recipe, we'll show how to use these features to handle these types of tax.
This process has some setup that needs to be done. The nice part about this option is that the burden on the user is pretty small. Setting up the basic tax schedules and details is well covered in the GP manuals and is not covered in this recipe. Make sure to set up at least one tax schedule and tax detail as a Purchase schedule before you start...