SuiteTax Adds Tax Inclusive Pricing Toggle on Transactions

What changed

A new Tax Inclusive Pricing feature is available for SuiteTax accounts. When enabled, a Prices Include Tax checkbox appears on supported taxable transactions, acting as a transaction-level switch between tax-inclusive pricing (TIP) and tax-exclusive pricing (TEP).

Core behavior

• TIP mode (box checked): item prices are treated as gross (tax-included) and populate the Gross Amount field. NetSuite back-calculates the net amount. Example: gross 120 at 20% tax → net 100, tax 20.
• TEP mode (box unchecked): item prices are treated as net and populate the Amount field. This is existing default behavior.
• The Summary section always shows Subtotal (net), Tax Total, and Total (net + tax) regardless of mode.

Pricing maintenance

• Item records can now carry both a TEP price and a TIP price. NetSuite sources whichever matches the transaction mode.
• For purchases, a new Tax Inclusive Purchase Price field stores the TIP value on the item record.
• Price levels can apply to TEP, TIP, or both.
• Quantity pricing schedules always update both TEP and TIP together — you cannot update one independently.
• Mass update flows can target TEP, TIP, or both. TIP updates based on average cost or most recent cost require an estimated tax rate; if left blank, NetSuite defaults to 0%.
• Customer and vendor pricing setups support both price types across multiple currencies.

Discounts, shipping, and handling

• Discounts follow the transaction mode: gross in TIP, net in TEP. Discount items do not carry separate TIP/TEP prices on the item record — the interpretation depends entirely on the transaction's Prices Include Tax setting.
• Shipping and handling follow the same logic. In TIP mode, labels change to Gross Shipping Cost and Gross Handling Cost.

Transaction transformations

The TIP/TEP state carries forward through supported transformations. A sales order with TIP enabled transforms to an invoice with TIP enabled. The same applies to purchase transformations (e.g., PO → Bill).

Known limitations

• Custom transactions — TIP is not supported.
• TIP field customization — not supported (you cannot add custom fields that participate in TIP logic).
• Update Prices on memorized transactions — not supported.
• Advanced Pricing — incompatible with TIP.
• Time Tracking — incompatible with TIP.
• Bills from item receipts — TIP is not preserved when the Use Purchase Order Rate on Bills preference is disabled. The bill falls back to TEP and sources the net amount from the item receipt. To retain TIP, enable the preference at Setup > Accounting > Accounting Preferences > Order Management.
• Reverse charge + Post To Item Cost — not supported on purchases with TIP. If any line combines these, the transaction cannot use tax-inclusive pricing for that combination.
• Third-party tax engines — TIP calculation is handled by the SuiteTax Engine specifically. If you use a different tax engine, consult that provider for support details.

What to do

1. Enable the feature: Setup > Company > Enable Features > Tax → check Tax Inclusive Pricing. This is account-wide and will surface the Prices Include Tax checkbox on all supported transactions.
2. Populate TIP prices on items: Review item records and add tax-inclusive prices where needed. For purchase items, populate the new Tax Inclusive Purchase Price field. If a line lacks the relevant price at save time, NetSuite will block the transaction.
3. Review price levels and quantity schedules: Decide which price levels need TIP values. Note that quantity pricing schedules update both price types simultaneously.
4. Audit customizations: Any scripts or workflows that set prices on transaction lines need to be aware of the TIP/TEP context. Check whether your code writes to the Amount or Gross Amount field and ensure it aligns with the transaction's Prices Include Tax state.
5. Check transformation flows: If you have SuiteScript hooks on transaction transformations (e.g., beforeLoad/afterSubmit on invoices created from sales orders), verify they handle the carried-forward TIP state correctly.
6. Review known limitations: If you use custom transactions, Advanced Pricing, Time Tracking, or bills from item receipts, confirm these workflows can tolerate the limitations above. Enable Use Purchase Order Rate on Bills if you need TIP on bills created from item receipts.
7. Test in Sandbox first. The interaction between TIP mode, existing pricing scripts, and tax calculations is broad. Validate end-to-end in a sandbox account before enabling in production.

Note: Oracle's documentation does not specify which NetSuite release introduced this feature. Verify availability in your account's release notes or feature provisioning before planning enablement.