[Tax Code Label (2)]

Select the tax code to use to calculate taxes on this invoice for Tax System 2. The field displays all tax codes (both rate and exemption) regardless of the Tax System. You select the correct tax code.

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 check boxes are selected on the Tax Codes 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 codes on the Tax Systems form.

This field is accessible only when a second tax system is defined and the Prompt for [Tax System (2)] field is selected on the Tax Parameters form. This field defaults from the Customers form.

The [Tax Code Label (2)] label is a user-defined label.