Tax appears on Bill created from Foreign Purchase Order when there should be no tax

Legacy KB ID: 3870

Question

Why does a negative tax amount appear when I convert a Foreign Purchase Order to a Receive Items Only then to a Bill when no tax code was entered on the purchase order?

Answer

This error will appear whether or not you have entered a tax code in the item set-up.  It will also occur when you convert the Purchase Order directly to a Bill.  

Workaround

On the Bill, enter a tax code for the item showing the tax amount, click on another line, return to the original line and delete the tax code.  The tax amount will disappear.