Purpose: Use this screen to define whether the system will charge tax on freight, in addition to merchandise.
Yes/no field: If you select this field, the system will charge tax on freight.
If you leave this field unselected, tax will not be calculated on freight.
If you leave this field unselected, the system will never allow you to charge tax on freight. An unselected setting overrides all other settings in the system.
Determining tax on freight for orders received from Order Broker: If the tax on freight is not passed in the fulfillments response message when from Order Broker, the amount of the tax on freight is determined by subtracting the tax amount passed for all order detail lines from the transaction tax total. The Freight tax override flag is selected.
Example: If the transaction_tax total is 5.00 and there are 3 item details, each with a tax amount of 1.00 (3 * 1.00), then the tax on freight is 2.00 (5.00 - 3*1.00). The tax is created as a tax override for the Order Ship To.
Zero tax on freight? If the transaction_tax total is equal to the total tax for the order detail lines, then the system determines that the tax on freight is zero. For example, the transaction_tax total is 3.00 and the tax amount on each of the three detail lines is a total of 3.00. In this situation, the Freight tax override flag is also selected.
This method applies to all orders created through the fulfillments response message from Order Broker, including both fulfilling orders for orders that originated in Order Management System, and orders that originated in a different system, such as Xstore.