Tax Code

Specify the tax code associated with the line number. For example, if the Tax Type is set to P, specify the tax code that is defined for purchasing transactions.

If the same tax code is used for both Tax Type S and P tax lines, the tax type for a particular transaction is determined by the tax account that was used for the transaction. (The tax account is defined in the Tax Code.) For example, if a transaction uses the tax account defined as the A/R Tax Account for the tax code, the transaction is included in a tax line with Tax Type S. If the transaction uses the tax account defined as the A/P Tax Account, the transaction is included in a tax line with Tax Type P. This situation occurs in the EU.