Freight tax is not calculated on the Sales Order Entry (40.100.00) screen for sales orders that include a premium freight charge in Microsoft Dynamics SL

Consider the following scenario in Order Management in Microsoft Dynamics SL 7.0 Service Pack 3 (SP3) and Microsoft Dynamics SL 2011:

• You create a tax ID on the Tax Maintenance (21.280.00) screen. On the Options tab, you select the Include Tax Exempt Customers check box.
• You assign this tax ID to a tax group on the Tax Group Maintenance (21.340.00) screen, and then you assign this tax group to a customer ID on the AR Customer Maintenance (08.260.00) screen.
• You create a new sales order that includes a value in the Premium Freight box on the Totals tab for this customer on the Sales Orders (40.100.00) screen.

When you view the Sales Tax tab in this scenario, you notice that the value in the Tax on Freight box is 0.00. Because you included a value in the Premium Freight box, you expected that tax would be calculated from that value.