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How To Setup EB-Tax To Prevent Tax Calculation On A Freight Line in A Payables Invoice Solution
How To Setup EB-Tax To Prevent Tax Calculation On A Freight Line in A Payables Invoice Solution
How To Setup EB-Tax To Prevent Tax Calculation On A Freight Line in A Payables Invoice Solution
Solution
There are several ways to prevent tax calculation on freight lines using input factors such
as Tax Code, Fiscal Classification, Business Category, and Product Type.
Use this note as the basis of one suggested setup approach to meet the requirement. In
the product documentation, you may find other options, which can be used according to the
business requirements.
2) You will see "PRODUCT_CATEGORY" in Fiscal Classification Type Code of the detail window.
Click on the 'Update' button
Based on your tax setup select the relevant "Configuration Owner", "Tax Regime Code", and
"Tax" and click on 'Go'.
5) In details, select the row for Determine Tax Applicability whose default value is
"Applicable" and go to Guided rule entry
8) Select a value from LOV for "Classification Hierarchy Level", "Operator" and "Value"
Example:
Classification Hierarchy Level = Level1
Operator = Equal To
Value = Freight
Here value is nothing but the Product fiscal Classification code defined in step 3
9) Rule Results : Select value "Not Applicable" from LOV for the field Applicable Tax.
12) Save
Verification
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1) In Payables, enter an invoice header.
2) Enter a Freight line.
3) On the freight line, enter the product category value defined in Step 3 above in the field
"Product Category" field.
Since the Freight line has a value of the product category for which we have now setup a rule
that Tax is not applicable, tax should not be calculated for Freight.