Tax Code 1

Enter or select the tax code to use in calculating taxes on the order for Tax System 1.

The tax code is used to reference information in the tax code file for the tax calculation. The code entered is validated against the tax code file.

In an area-based tax system, the tax code must be a rate type tax code. The tax rate is applied to the sum of the items on this order unless any of the items are individually exempt.

In an item-based tax system, the tax code can be exempt or a blank type tax code. If the header tax code is blank, it indicates the entire order is taxable. In this scenario, the rates are based on the tax codes which are entered for each line item. If the header tax code is not blank, then the entire order is exempt.

The system only prompts you to enter this field when the Prompt for [Tax System 1] field is selected on the Tax Parameters form. This field defaults from the Customers form, unless the estimate or estimate project is being created for a prospect. In that case, the default comes from the Prospects form.