Customer Ship To Setup - Taxing overview

Customers may have one billing address and one or more ship to addresses. These ship to addresses can be located in different states or localities that have different tax laws governing the customer purchases. We recommend that you specify the customer’s normal taxing status and information. If required, you can override the tax information during order entry.

To enable taxing, you must define your tax method and interface. Then, typically, you must configure your company, licensing, table code values, currency, addons, tax master, customer, warehouse, product, and vendor records.

These various settings are used to determine whether:

• some views and fields are displayed to collect or adjust additional tax information
• how that amount is applied to an order

The fields displayed in this view may vary depending on the Tax Method and Tax Interface selected in SA Company Setup-Taxes.

For each order, the taxable status and rate settings are validated in multiple functions. Tax is automatically calculated for the sales order. The multiple functions include: SA Company Setup-Taxes, SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup, Customer Setup-Taxing, Customer Ship To Setup-Taxing, and Product Warehouse Product Setup-Taxing.

For example, the customer ship to tax jurisdiction’s rates are applied to a sales order depending on:

• the Origin/Destination code in Product Warehouse Description Setup for the shipping warehouse
• whether the ship to location is located in another state

If either the customer ship to or product is non-taxable, taxes are not calculated.

If both the customer ship to and product have a variable taxable type, the line item is taxable unless an exemption record exists in SA Exemption Table Setup. You should create exemption records for situations where the customer ship to is generally taxable, with a few exceptions. For example, if a customer ship to is generally required to pay sales or use tax on most of your products, select Taxable in Customer Setup-Taxing. For those few products in which they are not required to pay taxes, set up exemption records in SA Exemption Table Setup.

See Taxable status.