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Transfers Between Tax Entities

Usually transfers are done between locations belonging to one company, or tax entity. However, there are cases where stores work together and are branded the same way but locations are owned by different companies, or tax entities. When stores are all within the one tax entities there are no tax issues. Store A doesn't have to charge and collect tax from Store B. However, when stock is moving between tax entities you do need to charge tax. Usually this would be done by raising purchase orders, invoices, and so on. This is a cumbersome method though for stores that work closely together. The Transfer Request/ Send will take this tax into consideration. If the requesting and sending locations have an ABN and they are different, the system will realise that tax needs to be taken into consideration. When the requesting store receives the stock, the system will calculate the tax on the items received and update the transfer transactions. You can then use the Transfer Tax Report to get full details of the tax on transferred goods over a period of time.

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