Tax Codes for Items by Jurisdiction

You can assign a separate tax code for each item for each different jurisdiction. This file is used as follows:

A Tax Code Type of E-Exempt with a Non-Zero Tax Rate and a non-blank Tax Jurisdiction is entered on a header form such as Purchase Orders. When a new item gets created, the Tax Code value defaults from the Item Codes by Jurisdiction file based on the Tax Jurisdiction entered in the Tax Code used on the header.

For example, a user in the United Kingdom sells to a customer in France. A Tax Code FR would be entered with a Tax Code Type E (Exempt), a Tax Rate of 1.0 and a Tax Jurisdiction of FRANCE.

When the line item is added, the system sees that a special Tax Code was entered on the header, so it tries to look up the Item Code by Jurisdiction where the Tax Jurisdiction equals FRANCE and the Item equals the item that was just entered. If this record exists, the item uses the Tax Code of this record; otherwise, it defaults from the Items form as usual.