Tax Code/Tax Code Item Label (1)

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 field as the rate tax code and the Tax Code Item Label as the exempt tax code.

This tax code determines if this distribution is exempt. If this field is left blank or has a non-zero tax rate, then the distribution is taxable at the rate, specified by the rate tax code. Otherwise, if a zero rate exempt code is entered, the distribution is exempt.

On the Invoices, Debit and Credit Memos form, the tax code is obtained from the Customers form.

On the Invoices, Debit and Credit Memos G/L Distribution form, this field displays the tax code.

On the Estimate Lines form, enter or select the tax code that identifies the tax rate that applies to this item in an item-based tax system, or leave this field blank in an area-based tax system. In an area-based tax system, a blank tax code signifies the item is taxable at the rate of the tax code entered on the Customer Ship-Tos form. This field defaults from the Items form.