If "Tax Exempt" is checked, the tax is still calculated during the re-order process.
Steps to reproduce:
1) Create a new item in the Item Master application, check the "Tax exempt" check-box and then save the record.
2) On the Vendors tab, add a new vendor, set it as the "default" vendor and save the record.
3) Change the status to Active.
4) Select Action -> Item/Org details, and ensure it is active for the organization.
5) Select Action -> Add the item to a storeroom.
6) Open the Inventory application and bring up the newly created item.
7) Select Action -> Reorder Items and click "Run reorder". Take note of the PR that is generated.
8) Open the PR that was created.
9) On the PR lines tab open the generated line item.
10) "Tax exempt" is checked. Change the Value of the "Unit Cost" to a value greater than zero.
Notice that the tax is still being calculated on the item even though it is designated as tax exempt. This only occurs during a re-order.
Resolving the problem
This has been recognized as a defect. APAR# IV42998 and it has been resolved in the Interim Fix 220.127.116.11