Applying Direct-Entry Taxes to Landed Cost Documents

On the Landed Costs (PO303000) form, you can create a landed cost document to which a direct-entry tax is applied. A direct-entry tax has the Direct-Entry Tax check box selected on the Taxes (TX205000) form. For details, see Direct Tax Payment: General Information.

For a direct-entry tax to be applied, all of the following conditions should be met:

• The landed cost document belongs to a tax zone in which the direct-entry tax is included.
• The line of the landed cost document has the None allocation method specified on the Landed Costs tab.
• The tax category selected in the document line contains the direct-entry tax and has the Exclude Listed Taxes check box cleared on the Tax Categories (TX205500) form.

For a direct-entry tax, the following columns are filled in by the system and cannot be edited on the Taxes tab of the Landed Costs form: Taxable Amount, Tax Amount, and Tax Rate.

You cannot manually delete a direct-entry tax from the Taxes tab of the Landed Costs form by selecting its row and clicking Delete Row on the table toolbar. To delete a direct-entry tax, you should change the tax category for the document line on the Landed Costs tab or delete the document line with the tax on the same tab.

When a bill is created for a line of the landed cost document to which a direct-entry tax is applied, on the Bills and Adjustments (AP301000) form, the Taxable Amount for this tax is 0 and the Tax Amount (shown on the Taxes tab) equals the line amount.