Origin/Destination

The tax rate that defaults on an order depends on the Origin/Destination setting in SA State Taxes Setup. This setting determines if tax rates from the site of origin, the shipping warehouse, or the site of destination, the ship to, are applied.

Specify Origin to apply the tax rates based on the location of the shipping warehouse. Specify Destination to apply the tax rates based on the customer ship to record. Specify Other only if you have custom Sales Use Tax settings.

For regular taxable orders, the Origin/Destination status of the taxing state on the shipping warehouse's Product Warehouse Descriptions Setup record determines which tax rates are used. If the taxing state has an Origin status, the tax rates for the taxing state on the Product Warehouse Descriptions Setup record are applied. If the taxing state has a Destination status, the tax rates from the Customer Setup or Customer Ship To Setup record are applied. For orders shipped out of state, the destination’s rates are always used.

The origin or destination status is determined by each state. For example, the State of Colorado is strictly a destination state. Any orders shipped inside or outside of the state are assessed the tax rates for the destination or ship to.

The Origin/Destination setting does not apply to Counter Sale or Will Call orders. Because the exchange of goods occurs at the warehouse location, the tax information from the Product Warehouse Descriptions Setup record is used for Counter Sale or Will Call orders.