Tax Code

Use this field to post taxes to the PO item. Press F4 to select a tax code from a list. Tax codes are created and maintained using the HQ Tax Codes form.

How is the default value determined?

This field defaults based on the PO item line type.

  • Job - The default is determined by the setting of the Base Tax On field in JC Jobs.

    • J-Job - The tax code defaults from JC Jobs ( Tax Code field). If no tax code is specified for the job, the default is null.

    • V-Vendor - The tax code defaults from AP Vendors ( Tax Code field). If a tax code is not specified for the vendor, the default is null.

    • 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 — Defaults tax code from IN Locations.

  • Expense, Equipment, EM Work Order – Defaults tax code from AP Vendors. If a tax code is not specified for the vendor, default will be null.

    Note: If you enter a non-taxable material, the tax code will default as null for all line types. If you enter a non-valid material (not applicable for Inventory lines), the tax code will default as null except for Job and Expense lines, in which case, the tax code defaults as indicated above for those line types.

Committed Costs (Job Lines)

If you post a job cost line (JC type) 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.

    Note: In all cases, the system updates JC with the tax rate amount. When you create an AP transaction for this PO item, the system relives the original tax rate amount from JC, but uses the current tax rate when creating an invoice.

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.

Use this field to post taxes to the PO item. Press F4 to select a tax code from a list. Tax codes are created and maintained using the HQ Tax Codes form.

How is the default value determined?

This field defaults based on the PO item line type.

  • Job - The default is determined by the setting of the Base Tax On field in JC Jobs.

    • J-Job - The tax code defaults from JC Jobs ( Tax Code field). If no tax code is specified for the job, the default is null.

    • V-Vendor - The tax code defaults from AP Vendors ( Tax Code field). If a tax code is not specified for the vendor, the default is null.

    • 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 — Defaults tax code from IN Locations.

  • Expense, Equipment, EM Work Order – Defaults tax code from AP Vendors. If a tax code is not specified for the vendor, default will be null. SM Work Order — Defaults tax code as null.

    Note: If you enter a non-taxable material, the tax code will default as null for all line types. If you enter a non-valid material (not applicable for Inventory lines), the tax code will default as null except for Job and Expense lines, in which case, the tax code defaults as indicated above for those line types.

Committed Costs (Job Lines)

If you post a job cost line (JC type) 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.

    Note: In all cases, the system updates JC with the tax rate amount. When you create an AP transaction for this PO item, the system relives the original tax rate amount from JC, but uses the current tax rate when creating an invoice.

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.

PO Pending Purchase Orders