Product Warehouse Product Setup - Taxing overview

This function provides additional flexibility, especially when warehouses are located in several tax localities. We recommend you specify the product's normal taxing status and information. If necessary, you can override the tax information during Sales Order Entry.

To enable taxing, you must define your tax method and interface. Then, typically, you must configure your company, licensing, table code values, currency, addons, tax master, customer, warehouse, product, and vendor records.

These settings are used to determine whether:

• some views and fields are displayed to collect or adjust additional tax information
• how that amount is applied to an order

The fields displayed in this view may vary depending on the Tax Method and Tax Interface selected in SA Company Setup-Taxes.

For each order, the taxable status and rate settings are validated in multiple functions. Tax is automatically calculated for the sales order. The multiple functions include:

• SA Company Setup-Taxes
• SA Goods and Services Tax Setup
• SA Sales Use Tax Setup
• SA Value Added Tax Setup
• Customer Setup-Taxing
• Customer ShipTo Setup-Taxing
• Product Warehouse Product Setup-Taxing

For example, the customer tax jurisdiction’s rates are applied to a sales order depending on:

• the Origin/Destination code in Product Warehouse Description Setup for the shipping warehouse
• whether the shipto location is in another state

If either the customer or product is non-taxable, taxes are not calculated. A table showing the combinations of settings is provided in the Taxable status topic.

If both the customer and product have a variable taxable type, the line item is taxable unless an exemption record exists in SA Exemption Table Setup. You should create exemption records for situations where the product is generally taxable, with a few exceptions.