Tax Code/Tax Code 1
Enter the tax code to specify the tax payable on this voucher for Tax System 1. The field displays all tax codes (both rate and exemption) regardless of the Tax System. You select the correct tax code.
The tax code is used to reference information for the tax calculation. The code entered is validated against the list of valid codes.
In an area-based tax system, the tax code must be a rate-type tax code. The following formula is used to calculate the tax amount (if the flags are set to Yes on the Tax Code form):
Tax Rate (Amount + Misc Charges + Freight)
In an item-based tax system, the tax code can be blank or an exempt-type tax code. If the tax code has a non-zero rate or is blank, it indicates the invoice is taxable. In this scenario, the rates are based on the default AR/AP tax code, which are entered on the Tax System form.
This field is available only if the Prompt for State Tax check box is selected on the Tax Parameters form.
On the Voucher Adjustment Distribution form, the tax code displays from the voucher.
On the Posted Transaction - Voucher Pre-register form, the tax code that is associated with the selected transaction displays for reference.