Defaults an amount based on the Tax Rate (defined for tax code in HQ Tax Codes) and the Tax Basis; may be overridden.
Tax amounts posted to subcontract lines are not included in the invoiced amount updated to SLIT (SL Items). Therefore, if you have set up a subcontract to include sales tax, it is suggested that you post invoices with the tax amount included as part of the gross amount (i.e. not posted separately here). If the subcontract is set up without tax, and sales tax applies, the gross and sales tax amounts should be entered separately on the invoice line.
When generating work completed miscellaneous lines from AP Transaction Entry, the system posts the tax information to the work completed line based on the work order type, the billable status, and whether the invoice line is material related or non-material. For detailed information, see About Tax Calculations for Work Completed
Tax amounts posted to a job-related SM Work Order line are included in the total billable amount for the work completed miscellaneous line generated during batch processing (even though the tax code is set to blank for the work completed line); this ensures that the total amount paid to the vendor is charged to the job.