Tax Classification Code is not Defaulted from Inventory Organization Level for an Item

We upgraded August 17, 2012 to 12.1.3.  In 11i we had tax codes setup on the item at the org level under the purchasing tab, taxable yes and then a code entered.  When purchase orders were created they defaulted in at the shipment level on the purchase order.

Both input and output tax classification codes are entered in R12 on the items at the org level but the codes are not defaulting in when a purchase order is created from a requisition.  Some requisitions are created thru i-procurement and other generated authomatically thru the min/max planning, req import, create releases.

We already have