Tax Code

Enter the tax code for this record.

Tax code defaulting logic differs based on the setting of tax mode on the Tax Systems form. In either mode (Area or Item), the defaulting begins at the Tax Systems form. If the tax mode is set to Area, defaulting occurs as described in Setting Up Default Tax Codes.

For Tax Systems with Tax Mode set to Item, the defaulting begins at the Tax System form. When a new item is entered on the Items form, the item tax code gets set to the tax code in the default item tax code. From this point, any time a new line item is added, whether in area or item mode, the new items' tax code(s) get set to the tax code(s) in Items, except in the case where a special (for example, non-zero tax rate) exempt code is entered on the Header form.