Include Use Taxes in Project Cost
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.