You are processing a credit for freight using the tax code FR and it is calculating tax when it wasn't on the invoice
- FR is generally tax depends.
- If your invoice has taxable items, then freight will be taxable.
- If your invoice has nontaxable items, then freight will be nontaxable.
- If your invoice has both taxable and nontaxable items, freight will be partially taxable.
- If freight has a positive amount and there is another line with a negative amount, freight will calculate a positive tax.
- When freight is the only item on the transaction or credit, the tax code FR will become taxable.
- It is suggested to credit the whole invoice and re-bill without the freight.