12 Default Values

This chapter contains these topics:

12.1 About Default Values

This chapter describes how to set up default values (tax explanation codes and tax rate/areas) for suppliers and customers. When you use transaction entry programs, the system automatically displays the defaults that you have defined.

You can assign default values using with the following programs:

  • For A/R and sales order processing, assign defaults values using Customer Master Information (P01053).

  • For A/P and purchase order processing, assign defaults values using Supplier Master Information (P01054).

When you enter a transaction (voucher, invoice, sales order, or purchase order), the default tax explanation code and tax rate/area values populate from Customer/Supplier Master Information. You can either accept or override the default values, as follows:

  • For A/P vouchers, you can override the defaults using the various Voucher Entry programs including Speed Voucher Entry.

  • For A/R invoices, you can override the default values using the Invoice Entry or the Speed Invoice Entry programs.

  • For sales orders, you can override the default values using the Enter Sales Orders screen or the Order Detail Information screen.

  • For purchase orders, you can override the default values using the Enter Purchase Orders screen, the Purchase Order Detail screen, or the Match Voucher to Open Receipt screen.

Note:

For journal entries using the Journal Entry With VAT Tax program, there are no defaults. You must manually enter a tax explanation code and a tax rate/area.

12.2 Default Values for A/P

Navigation

From the Accounts Payable menu (G04), select Supplier & Voucher Entry,

From the Supplier & Voucher Entry menu (G0411), select Supplier Master Information

You can specify default tax information for suppliers using the Supplier Master Information program. A/P entry screens display the defaults you establish here.

12.2.1 Supplier Master Information (P01054)

Figure 12-1 Supplier Master Information screen

Description of Figure 12-1 follows
Description of "Figure 12-1 Supplier Master Information screen"

For more information about Supplier Master Information, see the JD Edwards World Accounts Payable Guide. This guide describes only those fields necessary for tax processing.

Field Explanation
Tax Explanation Code A user defined code (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. You assign this code to a customer or supplier to set up a default code for their transactions.

Do not confuse this with the taxable, non-taxable code. A single invoice can have both taxable and non-taxable items. The entire invoice, however, must have one tax explanation code.

Values for the Accounts Payable system are:

V – VAT

VT – Same as V, taxes only

V+ – VAT, calculated as a tax on a tax

U – Use tax, self-assessed (PST in Canada)

UT – Same as U, taxes only

S – Sales tax , seller-assessed (PST in Canada)

ST – Same as S, taxes only

B – GST + self-assessed PST (Canada only)

BT – Same as B, taxes only (Canada only)

C – GST + seller-assessed PST (Canada only)

CT – Same as C, taxes only (Canada only)

E – Exempt

Note: B, BT, C, and CT are used in Canada. They can be assessed as a tax on a tax.
Tax Rate/Area A code that identifies a tax or geographical area that has common tax rates and tax distribution. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province) and their rates.

Typically, the U.S. sales and use taxes require multiple taxing authorities per tax rate/area, whereas value added taxes often require only one simple rate.

Form-specific information

The system uses this information as the default when you enter vouchers.

If you use Vertex, the Vertex GeoCode appears in this field. The system retrieves the Vertex GeoCode based on the supplier's city, state, and zip code.

12.3 Default Values for A/R

You can specify default tax information for customers using the Customer Master Information program. A/R entry screens will automatically display the defaults you establish here.

Navigation

From the Accounts Receivable menu (G03), select Customer & Invoice Entry.

From the Customer & Invoice Entry menu (G0311), select Customer Master Information.

12.3.1 Customer Master Information (P01053)

Figure 12-2 Customer Master Information screen

Description of Figure 12-2 follows
Description of "Figure 12-2 Customer Master Information screen"

For more information about Customer Master Information, see the JD Edwards World Accounts Receivable Guide. This guide describes only those fields necessary for tax processing.

Field Explanation
Tax Explanation Code A user defined code (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. You assign this code to a customer or supplier to set up a default code for their transactions.

Do not confuse this with the taxable, non-taxable code. A single invoice can have both taxable and non-taxable items. The entire invoice, however, must have one tax explanation code.

Values for the Accounts Receivable system are:

V – VAT

VT – Same as V, taxes only

V+ – VAT, calculated as a tax on a tax

S – Sales tax , seller-assessed (PST in Canada)

ST – Same as S, taxes only

C – GST + seller-assessed PST (Canada only)

CT – Same as C, taxes only (Canada only)

E – Exempt

Note: C and CT are used in Canada. They can be assessed as a tax on a tax.
Tax Rate/Area A code that identifies a tax or geographical area that has common tax rates and tax distribution. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province) and their rates.

Typically, the U.S. sales and use taxes require multiple taxing authorities per tax rate/area, whereas value added taxes often require only one simple rate.

Form-specific information

If you use Vertex, the Vertex GeoCode appears in this field. The system retrieves the Vertex GeoCode based on the customer's city, state, and zip code.

12.4 Defaults Values for Purchase Orders

You can specify default tax information for suppliers using Supplier Master Information. Purchase order entry screens display the defaults you establish here.

The Supplier Master Information program was shown earlier in Defaults for A/P in this chapter. The values you enter for A/P and purchase orders are the same.

Field Explanation
Tax Explanation Code A user defined code (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. You assign this code to a customer or supplier to set up a default code for their transactions.

Do not confuse this with the taxable, non-taxable code. A single invoice can have both taxable and non-taxable items. The entire invoice, however, must have one tax explanation code.

Values for purchase orders are:

V – VAT

V+ – VAT, calculated as a tax on a tax

U – Use tax, self-assessed (PST in Canada)

S – Sales tax , seller-assessed (PST in Canada)

B – GST + self-assessed PST (Canada only)

C – GST + seller-assessed PST (Canada only)

E – Exempt

Note: B and C are used in Canada. They can be assessed as a tax on a tax. Note also that tax-only codes are not valid.
Tax Rate/Area A code that identifies a tax or geographical area that has common tax rates and tax distribution. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province) and their rates.

Typically, the U.S. sales and use taxes require multiple taxing authorities per tax rate/area, whereas value added taxes often require only one simple rate.

Form-specific information

The system uses this information as the default when you enter vouchers.

If you use Vertex, the Vertex GeoCode appears in this field. The system retrieves the Vertex GeoCode based on the supplier's city, state, and zip code.

12.4.1 Tax Default Override

The system will automatically display the default tax explanation code and tax rate/area for the supplier when you use the Enter Purchase Orders programs. You can either accept or override (type over) the default values.

Note:

You can use the Supplier Master Information program to set up information for supplier addresses and supplier ship-to addresses. The processing options you specify for Enter Purchase Orders control whether tax information defaults from the supplier or the supplier ship-to address.

12.5 Defaults Values for Sales Orders

You can specify default tax information for customers using the Customer Master Information program. Sales order entry screens display the defaults you establish here.

The Customer Master Information program was shown earlier in Defaults for A/R in this chapter. The screen and the values you can enter for A/R and sales orders are the same.

Field Explanation
Tax Explanation Code A user defined code (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. You assign this code to a customer or supplier to set up a default code for their transactions.

Do not confuse this with the taxable, non-taxable code. A single invoice can have both taxable and non-taxable items. The entire invoice, however, must have one tax explanation code.

Values for sales orders are:

V – VAT

V+ – VAT, calculated as a tax on a tax

S – Sales tax , seller assessed (PST in Canada)

C – GST + seller assessed PST (Canada only)

E – Exempt

Note: C is used in Canada and can be assessed as a tax on a tax. Note also that tax-only codes are not valid.
Tax Rate/Area A code that identifies a tax or geographical area that has common tax rates and tax distribution. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province) and their rates.

Typically, the U.S. sales and use taxes require multiple taxing authorities per tax rate/area, whereas value added taxes often require only one simple rate.

Form-specific information

If you use Vertex, the Vertex GeoCode appears in this field. The system retrieves the Vertex GeoCode based on the customer's city, state, and zip code.

12.5.1 Tax Default Override

The system will automatically display the default tax explanation code from the customer address and the tax rate/area from the ship-to address when you use the Enter Sales Orders program. You can either accept or override (type over) the default values.

12.6 What You Should Know About

Topic Description
Tax default Values for Journal Entry with VAT Tax There are no tax defaults for Journal Entry With VAT Tax. You must manually enter a tax explanation code and a tax rate/area.

See Also: