Tax Code Hierarchy

Customer (AR, SO) based transactions:

1. Customer
2. Inventory item, Non-stock code, GL Account, or JC Sales code
3. Company (Sales tax code if company is subject to North American sales tax).

IN Transactions

AR Invoice, Quote and Credit Note transactions for an inventory line:

1. Customer delivery address (applicable where North American sales tax is in use)
2. Customer
3. IN Selling Price
4. Price book
5. Inventory item
6. Inventory transaction type
7. Company.

Supplier (AP, PO, SCM) based transactions:

1. Supplier
2. Inventory item, Non-stock code, GL Account, or JC Sales code
3. Company (Purchase tax code if company is subject to North American sales tax).

IN Transactions

1. Inventory item
2. Inventory transaction type
3. Company.