Tax Defaults in Purchasing
You can set up Purchasing to default tax names based on your business needs. You set up the Tax Defaults hierarchy in the Tax Defaults region of the Purchasing Options window to determine the following:
- Which sources you use for tax names
- The order in which Purchasing searches the sources to find a valid tax value
A Tax Name defined in the Purchase Order Preferences window overrides any tax defaults you set in the Tax Defaults region of the Purchasing Options window. See: Entering Purchase Order Preferences.
For instructions on defining the Tax Defaults hierarchy, see: Defining Tax Defaults Options
Duplicating Tax Functionality from Previous Releases
Purchasing preserves your tax defaults from previous releases. That is, Purchasing continues to default tax from the ship-to location if you don't set a tax defaulting hierarchy in the Tax Defaults region of the Purchasing Options window. (Note that a Tax Name defined in the Purchase Order Preferences window overrides this tax defaulting hierarchy.)
How Tax Defaults Affect Purchasing Documents
The tax defaults you select in the Tax Defaults region of the Purchasing Options window are used in the following windows and processes in Purchasing:
- Shipments window for standard and planned purchase orders
- Purchase order line shipments created by the AutoCreate Documents window
- Shipments alternative region in the Releases window
- Release shipments created by the Create Releases process
- RFQ Shipments window (for Bid or Standard RFQs) or RFQ Price Breaks window (for Catalog RFQs)
- Quotation shipments window (for Bid or Standard quotations) or Quotation Price Breaks window (for Catalog quotations)
These tax defaults in the Tax Defaults region of the Purchasing Options window affect your purchasing documents in the following ways:
- When creating a release from a planned purchase order, the tax name on the planned purchase order shipment overrides any tax defaults you set in the Tax Defaults region of the Purchasing Options window.
- If you change the tax name of a tax source (for example, the Tax Name in the Invoice Tax alternative region of the Supplier Sites window), Purchasing does not update your existing documents with the new tax name; it updates only new documents you create.
- If you change any of the tax sources (for example, the Supplier or Site on a purchase order header) when you create a purchase order, Purchasing defaults a new Tax Name corresponding with the new tax source on all new shipments you create but does not use the new Tax Name on previous shipments you created.
- If you override a defaulted Tax Name on the shipment you're currently entering and then change any of the tax sources (such as Supplier or Site) on the purchase order, Purchasing does not default a new Tax Name.
- If you've set up a tax defaulting hierarchy in the Tax Defaults region of the Purchasing Options window, the appropriate tax names automatically default onto the release shipments created by the Create Releases process.
- If you've set up a tax defaulting hierarchy in the Tax Defaults region of the Purchasing Options window, the appropriate tax names automatically default onto documents you autocreate.
See Also
Defining Tax Defaults Options
Tax Control Methods
