Fix Sage 50 Sales Tax Not Calculating Error

Hey! Is it frustrating for you to deal with the “sales tax not calculating” Issue? Don’t panic if your answer is yes just because here’s the solution. This blog is specially written for users who want to fix this Sage 50 sales tax not calculating error as soon as possible. The Sage 50 customer and sales tab includes a summary of customer information access to recently used customer reports and an overview of your company’s aged receivables. Along with this, the Navigation Centre shows the flow of customer-related tasks and takes you where you need to go to perform those tasks. 

Causes of Sales Tax Not Calculating in Sage 50 Accounts

• If the customer or Vendor Tax record is set up as exempt Yes.
• If the line item total is entered in Price instead of Amount when inventory is not being used. 
• If the taxes are included in the price.
• If the inventory/ service tax record is set up as exempt Yes.

Related Topic: Troubleshoot Payroll Tax Calculation Errors in Sage 50

Resolutions of the Sage 50 Sales Tax Not Calculating Issue

Walkthrough each resolution tax is not calculated on the sales side in Sage 50 accounting.

Solution:1 Taxes are included in the Price

• To ensure that the tax code is not included in Price, follow the linked article in Related Resources. 
• By design, when the sales tax code calculates the sales taxes included in the price, the tax amount will not show on the sales invoice screen.
  • While in the sales/ purchase invoice, you can verify that the tax amounts are going to the appropriate accounts by doing a Ctrl + J to view the journal entry. 

Solution: 2 Customer / Vendor record has tax-exempt on Yes

• Navigate to the Customer/ Vendor record.
• In the taxes tab, switch Yes to No under Tax Exempt.
• Select Save and Close.

Solution: 3 Inventory or Service record has tax-exempt on Yes

• Hover over the Inventory/ Service record.
• Go Yes to No under Tax Exempt under the Taxes Tab. 
• Hit Save and Close. 

Solution: 4 No Tax Code Assigned to the Customer/ Vendor

• Move to the Customer/ Vendor record.
• Click the Taxes tab.
• Select a tax code from the Choose the tax code… drop-down list.
• Press Save and Close. 

Solution: 5 Price Being Entered Instead of Amount

• Enter the total for the line item into the Amount field rather than the Price field if not using inventory items.
• Once you are done with leaving the Amount field, you need to press TAB or select a different field, and the sales tax amount will be calculated. 

Solution: 6 Taxes option is set to exempt no

• First, locate Setup, and Settings.
• Select Company, Sales Taxes, and tax codes.
• Confirm the Exempt from this tax: No.

Related Post: Social Security Tax is Wrong in Sage 50

Winding-Up! 

Hopefully, this write-up will prove helpful for you but if in case, the issue has persisted and you are unable to resolve it alone, feel free to get in touch with the Sage 50 professional experts. They are always available to help you with instant and cutting-edge solutions. So, don’t worry if your system doesn’t allow you to proceed ahead as we are here to make you happy with the most satisfactory results.

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