If you see use tax on the cost sheet but not on the invoice, this is usually not a system error.
Here’s why it happens.
Understanding the Difference
Invoice Use Tax
Calculated automatically based on:
Your tax settings
Customer tax status
Service type configuration
Cost Sheet Use Tax
Includes:
Automatically calculated use tax
Any manually entered use tax on Purchase Orders
Most Common Cause: Manual Entry on a Purchase Order
If a user manually enters a use tax amount on a Purchase Order line item:
That amount flows to the cost sheet.
It does not automatically change the invoice.
This creates a difference between the two.
How to Check
Open the Work Order.
Review the associated Purchase Order.
Look for manually entered use tax values on line items.
If entered incorrectly:
Update the line item.
Save the Purchase Order.
Confirm the cost sheet recalculates.
What About Tax-Exempt Customers?
If a customer is marked Tax Exempt:
Sales tax on the invoice will be $0.
Use tax may still appear on the cost sheet as a store expense.
Tax exemption only affects what the customer is charged — not your internal job costs.
When Should I Contact Support?
If:
No manual entries exist,
Settings are configured correctly,
And amounts still appear incorrect,
Contact support with:
Invoice number
Work Order number