We often receive invoices that need to have tax reported in different states because of the way the invoice is divided among our restarurants. How do other companies handle these situations?

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Our experts that have experience with sites in multiple states agree that it's best to have the vendor bill you according to location (ship to address), rather than putting multiple sites on the same invoice.

Debbie Vander Bogart, Senior Director, Finance General Manager, Shared Service Center, Levi Strauss & Company, says they make the vendor invoice by store/location and then their "tax bolt on" module (at both Levi and Gap, where she was Shared Services Directory prior to moving to Levi) calculates the appropriate tax. For Levi, the PO must also be written this way to accommodate the matching process.

Judy Bicking, Former Global Director, Accounts Payable European Project, Johnson & Johnson AP Best Practice Consultant, says they would either ask the supplier to bill per ship location OR have a separate PO line item per state. That could be very cumbersome if there are many line items and it would require a pretty tricky report for the tax managers to accurately report sales & use tax. So, her recommendation would be that the supplier must bill per ship location.

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