Tax Code - System 1
Enter the tax code to specify the tax due for Tax System 1 on this purchase order. The code entered is validated against the tax code file.
Right-click and select in this field to go to the Tax Codes form, where you can add or find a tax code.
On the Purchase Orders or Purchase Orders Quick Entry form, the tax code depends on the tax system:
- In an area-based tax system, the tax code must be an rate-type tax code.
- In an item-based tax system, the tax code can be blank or an exempt-type tax code. Leaving the tax code blank indicates the entire order is taxable and the basis is controlled by the tax codes entered on the line item level.
On the Purchase Order Lines or Purchase Order Blanket Releases form, either specify an exempt tax code or leave the field blank to use the tax code from the PO header.
The Tax Code field is only used when generating Accounts Payable vouchers. The tax amount is entered by you on the AP Voucher Generation form, but the Tax Code field is used to generate the tax records recorded with the tax amount.
You are only prompted for this field when the Prompt for [Tax System (1)] field is enabled on the Tax Parameters form and the Active for Purchasing field is enabled on the Tax Systems form. This field defaults from the Vendors form.