Tax Codes

Customer (AR, SO) based transactions

The tax code for transactions of this type is taken from:

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

This exception applies with regard to AR Invoice and Credit Note transactions for an inventory line:

1. Customer delivery address (applicable if U.S. sales tax is in use).
2. Customer.
3. Standard selling price for price set up in IN Selling Price Maintenance).
4. Price book.
5. Inventory item.
6. Inventory transaction type.
7. Company.

Supplier (AP, PO, SCM) based transactions

The tax code for transactions of this type is taken from:

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

IN Transactions

Tax codes default to inventory transaction lines based on this hierarchy:

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