Sales tax codes default in from the vendor file. You cannot have a use tax code in the P/O header because the purpose of the P/O is to determine the amount to be paid to the vendor. Sales tax codes can be changed by item code on the tax % field on the second screen of Purchase Order Entry. Use tax can be entered on the second screen by line item as well. Neither tax will increase the extension of the line items, but Sales tax amounts appear at the top of the screen, along with taxable and non-taxable purchase amounts. If the vendor has a Use tax code in its master file, you will need to blank out the sales tax code and rate fields in the P/O header. If Use tax codes need to be used on a P/O, the codes need to be entered line item by line item in either the second screen of P/O entry, in P/O invoice receiving, or in invoice entry after the invoice has been transferred to A/P.

Proposed purchase orders work the same as above.