Tax Code

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

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

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

  • SM Work Order Lines – Defaults tax code from one of the following (may override as necessary):

    • Job work order – from JC Jobs

    • Customer work order and sales tax – from AP Vendors

    • Customer work order and use tax – from Work Order Site or Center
      • For use tax – when generating work completed miscellaneous lines, the system sets the tax code as you have entered it in AP.

      • For sales tax – when generating work completed miscellaneous lines (via AP Unapproved Invoice Posting), the system sets the tax code as defined for the service site or service center (depending on work order scope's tax source), regardless of the tax code specified here. This applies only to customer-related SM work orders. If the work order is job-related, the system sets the tax code to blank for the work completed line, regardless of whether you specify a tax code here (so that taxes will not be applied to the billable amount for the job).

  • PO & SL Lines – Defaults tax code as defined on the purchase order or subcontract (respectively).

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

Committed Costs

If you specified a job (JC, PO, or SL line types) for this line and you post taxes to the line, the system relieves committed costs from the phase/cost type in JC Cost Detail table for the tax amount as follows:
  • 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.

  • 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

Intercompany Transactions

If the tax type is 1-Sales or 3-VAT (Value Added Tax), the tax code defaults based on the Tax Group assigned to the AP Company. If the tax type is 2-Use, the tax code defaults based on the Tax Group assigned to the 'posted to' company.