Freight Tax Code 1

On the Customer Orders form, enter the tax code to use when calculating taxes on freight for Tax System 1.

In an area-based tax system, the tax code entered for freight is an exempt-type tax code. If the tax code is blank, freight will be taxed at the order header rate. The order header tax code must have the Include Freight field set to Yes in order to tax freight.

In an item-based tax system, the tax code may be either a rate-type tax code or blank. If blank, freight is not taxed. The system validates the code you enter against the tax code file. If the customer is exempt from tax in this tax system, the freight will also be exempt.

The system prompts you to enter this field only when the Prompt For field is selected on the Tax Parameters form. The default value for this field is from the Freight Tax Code field on the Tax Systems form.

For information about default values for the Consolidated Invoices Workbench form, see Sales Tax in Consolidated Invoices.

Freight Tax Code 1 is a user-defined label.

Note: If you are using multiple currencies, the calculations first try to locate price formulas and item pricing records in the customer's currency. If the customer's currency is available then those values are used. If no records are found in the customer's currency, then records will be located in the domestic currency and then converted to the customer's currency.