About Pass Thru Tax

If you mark the Pass Thru Tax Rate % check box, the tax is passed through to the unit cost of an item from the purchase order or P-Card transaction when the following conditions are met:

• The option is enabled in Client Info / Preferences (Materials Management section)
• The line item on the transaction is taxable
• The transaction has a tax rate specified
• The tax rate specified on the transaction has a value in the Pass Thru Tax Rate % field

The pass-through tax is applied to the average cost of a part for stocked items or the unit cost for one-time purchases. The following specifies when the pass-through tax is applied.

• Purchase Orders

Non-invoiced. Pass-through tax is applied during receiving.

Invoiced (WebTMA Enterprise Only). Pass-through tax is applied when the invoice is matched.

• P-Card Transactions (WebTMA Enterprise Only)

Items purchased for work order or sales order. Pass-through tax is applied when the transaction is saved.

Items purchased for stock. Pass-through tax is applied when the P-Card transaction is reconciled.

Items purchased for stock will include the amount of the Pass Thru tax in the part's average price. This statement applies if you use the purchase order or the P-Card transaction but not P-Card transaction items purchased for work orders or sales orders.