Why Is Use Tax Showing on My Cost Sheet but Not My Invoice?
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:
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Your tax settings
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Customer tax status
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Service type configuration
Cost Sheet Use Tax
Includes:
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Automatically calculated use tax
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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:
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That amount flows to the cost sheet.
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It does not automatically change the invoice.
This creates a difference between the two.
How to Check
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Open the Work Order.
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Review the associated Purchase Order.
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Look for manually entered use tax values on line items.
If entered incorrectly:
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Update the line item.
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Save the Purchase Order.
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Confirm the cost sheet recalculates.
What About Tax-Exempt Customers?
If a customer is marked Tax Exempt:
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Sales tax on the invoice will be $0.
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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:
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No manual entries exist,
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Settings are configured correctly,
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And amounts still appear incorrect,
Contact support with:
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Invoice number
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Work Order number