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You can also ensure that the tax code for your transaction lines match the tax code assigned to your Revenue account when you enter transactions. If you set the Receivables system option Enforce Tax Code from Revenue Account to Yes, the Transactions Workbench will not let you complete a transaction unless the tax code for each line is the same as the tax code assigned to your Revenue account. This ensures that the VAT amounts in your tax returns reconcile to the tax liability accounts and that the taxable amounts in your tax returns reconcile to the Profit and Loss accounts.

Suggestion: If you enforce validation on tax codes from the revenue account, you should not derive tax codes from customers, customer sites, or inventory items.

The table below summarizes how your setup affects tax code validation at the invoice line level.

Setting of GL account option 'Allow Tax Code Override'	Setting of system option 'Enforce Tax From Revenue Account'	Will Receivables enforce the tax code from the Revenue account?
No	Yes	Yes (you cannot enter a new tax code)
Yes	Yes	No (you can override the default tax code)
No	No	No (you cannot override the default tax code)
Yes	No	No (you can override the default tax code)
Table 1 - 94. (Table 1 of 1)

See Also