Estimate does not convert correctly to a Sales Order

Legacy KB ID: 4292

Question

Why doesn’t the Estimate amount convert properly to a Sales Order?  It appears the mark-up does not come across.

Answer

The problem appears if the invoice is set to display prices in Gross terms through either:

• ‘Amounts include Tax’ ticked on Invoice
• Tax Preferences are set to Gross

Workaround

Use Net values rather than Gross:

• Do not tick ‘Amounts include Tax’ on the Sales Order
• Set Tax Preferences to Accrual and Net:
• • Edit > Preferences > Tax > Company Preferences
  • Under Sales Reporting click on Net
  • Under Tax Reporting Basis, click on Accrual
  • Click OK to close