Overview
Tax Location records carry the sales tax rate detail information for a given geographical area or district.
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There are five predefined tax categories and three user-defined categories, all summing to a total tax rate for a given location.
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A separate ‘sales’ account is attached to each tax rate so that collected taxes can be easily routed to the appropriate entity.
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To use this Tax Location on a Division other than the 'Primary Sales Division', it is necessary to add a Sales Division Account for that other Division on the Sales Division Accounts Tab(Refer below).
NOTE Tax Location is required for any given Ship-To Address used. Ship-To Addresses established without a Tax Location value will fail in the SO Fulfillment process.
Application
Tax Location codes define the tax percentage and revenue accounts necessary to calculate and transfer sales tax data to General Ledger. Tax Codes are assigned on the Customer Master Ship-To-Address.
Prerequisite
SO Control: Record must exist before entering Tax Location records
Processing
Step 1
Navigation
Tax Location
Step 2
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To add a new record click the New Tax Location button.
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To edit an existing record, select Edit in the Action column.
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To view select the Name in the 'Name' Column.
Tax Location Input Screen
Fields
Tax Location ID: Defines the tax percentages and revenue accounts necessary to calculate and transfer sales tax data to the GL.
NOTE When creating the record, this field 'Tax Location ID' defaults from the VAT Class specified on the 'Associated VAT Class' field, and it can be overridden.
Description: Description associated with the Tax Location.
NOTE This field 'Description' defaults from the VAT Class specified on the 'Associated VAT Class' field, and it can be overridden.
Total Tax Rate: This field's value is set to the sum of the 8 maintainable tax rates.
Federal Tax Rate: The tax rate for the 'Ship To' Country.
NOTE This field 'Federal Tax Rate' defaults from the VAT Class specified on the 'Associated VAT Class' field, and it can be overridden.
State Tax Rate: The tax rate for the 'Ship To' State.
County Tax Rate: The tax rate for the 'Ship To' County.
City Tax Rate: The tax rate for the 'Ship To' City.
Transit District Tax Rate: Tax Rate associated with the Transit District Account.
Miscellaneous Tax Rate 1: Rate for Miscellaneous Tax 1.
Miscellaneous Tax Rate 2: Rate for Miscellaneous Tax 2.
Miscellaneous Tax Rate 3: Rate for Miscellaneous Tax 3.
Associated VAT Class: When the SOTAX object is used to calculate 'VAT not included in Amount' this field allows for the SOTAX object to be associated with a VAT Class (for reporting purposes only).
NOTE When a VAT Class is specified on this 'Associated VAT Class' field, the following tax rate field values must be zero:
Primary Sales Division: A Primary Sales Division is indicated for each Tax Location record that is created.
NOTE On the 'Sales Division Accounts' tab, additional accounts can be added to this record as child accounts.
Federal Tax Account: The Sub Ledger Account (aka Mfg Account) to be debited for applicable Federal Tax charges when this Tax Location is used.
NOTE This field 'Federal Tax Account' defaults from the VAT Class specified on the 'Associated VAT Class' field and it can be overridden.
State Tax Account: The Sub Ledger Account (aka Mfg Account) to be debited for applicable State Tax charges when this Tax Location is used.
County Tax Account: The Sub Ledger Account (aka Mfg Account) to be debited for applicable County Tax charges when this Tax Location is used.
City Tax Account: The Sub Ledger Account (aka Mfg Account) to be debited for applicable City Tax charges when this Tax Location is used.
Transit District Tax Account: The Account for the Transit District Tax
Miscellaneous Rate 1 Account: Miscellaneous Tax Account associated with Tax Rate 1.
Miscellaneous Rate 2 Account: Miscellaneous Tax Account associated with Tax Rate 2.
Miscellaneous Rate 3 Account: Miscellaneous Tax Account associated with Tax Rate 3.
Sales Division Accounts Tab
From the Sales Division Accounts tab, additional accounts can be added to the header record as child objects for each Inventory Division when using Centralized Sales. This enables accounts for other Inventory Divisions to be added with their Division-specific Sub-Ledger Accounts.
SEE ALSO
Vendor Master
Sales Order Control
Value Added Tax (VAT) Setup Requirements
