The Use Tax Accrual feature had been found to experience the following issues when the Include Purchase Taxes in Project Costs option is selected on the Project Setup window (Tools » Setup » Project » Project).

IMPORTANT: It is NOT recommended to have the Include Use Taxes in Project Costs option selected when using the Use Tax Accrual feature.

NOTE: This issue applies if you are using Project Accounting, a “Time and Materials” Project Type, and while entering Drop Ship purchase order transactions.

• The accrual distributions created by DynamicZip (both the credit and debit) are assigned to the project's Cost of Goods Sold/Expenses account. Only the debit should be assigned to the project's Cost of Goods Sold/Expenses account. The accrued credit distribution should instead be assigned to the purchase tax detail's account.
• The accrual tax detail records created by DynamicZip are also assigned to the project's Cost of Goods Sold/Expenses account. These accrual tax detail should instead be assigned to the tax details' accounts.

Please see Pop Project Accounting FAQ for help with including purchases tax in a project's costs.

Known Issues