You really shouldn't having this popup at all.  Either a line is taxable or it is not.  You should not have an option for a $400 line to be only $350 taxable.  That was a feature available in the old DBA but it only asks for problems.  You should set the Sales Order Default "Prompt for Taxable Line Item amount" to N.  If you have material and labor billed separately, they should be separate lines.

Laura,
 
Are you sure you're interpreting the regulation correctly? Not only does it seem a nightmare to keep track of, what is "material"? Say you happen to be very large company that mines ore and makes cars. Are you saying that only the price of the dirt would be taxable?
 
A more likely scenario - say you buy wire and make your own screws. Those screws are used to hold a pump cover on, and then the pump is fitted to an engine that powers a compressor. You really have to track the price of the wire all the way down to the compressor?
 
In any state I've ever dealt with (not many - maybe 8 to 10), once you perform labor ON an item (usually defined as changing its use or purpose) the entire cost is taxable. If you are simply modifying it (say, putting threads on a shaft, or cutting it to a custom length) then the material is taxable and the labor is not. Likewise for installation or repair of part. In those cases you would charge for the part and the labor separately.
 
My take would be that if you're charging for a single part number then it is "a material", including the labor it took to mine the dirt, process it, smelt the metal, forge it, turn it and finally finish it into whatever specialized part it's for.
 
But I am surely not a tax accountant certified in Alabama...

It all depends. I was reading about tax laws in Alabama and I was surprise to find out a section for beer!!!
 
Quote:

 

I am sure!   I have been audit 3 times in since 1980.  (and I am getting audited again in 3.5 weeks!!!)
 
I  know it sound crazy, but only the material in a manufactured item is taxable. (now that item must also used in the mfg. process)   But the labor is not taxable.   If it is a replacement part used in MFG then only the material is taxable.
 
Say we machine a brand new repair part for a large steel mill.   We may charge the Steel Mill $8000.00 but they will only pay tax on  the material of $2500.00  not the labor of $5500.00
 
I use one part # that is priced at $8000.00 but I tell DBA the taxable amount is only $2500.00.  It has worked like a charm since 1997 and I love this aspect of DBA.  Please don't take it away.

I'm glad they're satisfied, but I still think it would be a lot simpler if you had separate line items for parts and repair labor since that's what you're actually charging for.

Quote from Lynn_Pantic on 06/16/13 at 19:28:10:

 
We have used this feature since 1997 in DBA and it has never caused us problems.  
 
 
We are trying  so very hard to use EVO.  But we have to have the ability to make part of the item taxable  and part of it labor like in DBA.  
We really need to have that popup box ENTER TAXABLE AMOUNT when we are using EVO.
 
Any ideas.
Thanks
Laura

Thank you,
 
Heavy Sigh.....
 
It means the creation of a ton of part numbers.  Having two or three lines for one item confuses our customers.   We played with having our part numbers roll up to one part number in kits, features and options etc, but our part numbers have different classes as the work is done in different departments.  Item numbers with different classes will not roll up into one part number.
 
I gotta think on this one.  Thanks again!