Tax Basis
Enter a taxable monetary amount on which the tax amount is based.
The display order of this Tax Code field depends on the tax system. The tax code defined by you as the rate tax code always displays above the tax code defined as the exempt tax code.
If the tax system is an area-based tax system, the [Tax Code Label] field represents the rate tax code and displays above the [Tax Item Code Label] field, representing the exempt tax code. If the tax system is an item-based tax system, the [Tax Item Code Label] field now represents the rate tax code, and displays above the [Tax Code Label] field, now representing the exempt tax code.
This field represents the [Tax Code Label (1)] field as the rate tax code and the [Tax Code Item Label (1)] as the exempt tax code.
These rough calculations may not be correct in most cases and the tax basis should be entered based on the details of the invoice transaction being recorded.
On the A/R Invoice Debit and Credit Memo form, the tax basis displays in the browser.