Tax Code

If posting taxes to this item, specify the tax code, or accept the default. Default is based on the following:
  • Job Lines — The default for this field is determined by the setting of the Base Tax On drop-down field in JC Jobs. If the field is set to J-Job, the tax code defaults from JC Jobs (Tax Code field). If the field is set to V-Vendor, the tax code defaults from AP Vendors (Tax Code field). If the field is set to O-Vendor Override, the tax cod defaults from AP Vendors. If a tax code is not specified there, the tax code will default from JC Jobs. You can override the default as necessary.

  • Inventory Lines — Defaults tax code from IN Locations, unless material is not taxable, in which case, defaults as null.

  • Exp, Equip, Work Order Lines – Defaults tax code from AP Vendors.

  • PO Lines – Defaults tax code as defined on the purchase order.

  • SL Lines – Defaults tax code as null.

  • If a valid, non-taxable material is entered for the line, the tax code will default as null. If a non-valid material is entered, the tax code will default based on the line type.

  • If you leave the tax code blank for a job cost line (JC, PO, or SL type), and you post the line with tax, the system relieves committed costs from the phase/cost type in JC Cost Detail table for the tax amount as follows:

  • if phase or cost type overrides do not exist for the tax code, the system uses the phase and cost type specified for the PO item.

  • if phase and cost type overrides exist for the tax code, the system uses the tax code phase and cost type.

  • if a phase override exists for the tax code, but a cost type override does not exist, the system uses the tax code phase and the cost type from the PO line.

  • if a cost type override exists for the tax code, but a phase override does not exist, the system uses the phase from the PO line and the tax code cost type.

For Intercompany transactions, if the tax type is Sales or VAT (Value Added Tax), the tax code defaults based on the Tax Group assigned to the AP Company. If the tax type is Use, the tax code defaults based on the Tax Group assigned to the 'posted to' company.