Alternate Tax Rate/Area Assignments for Service Contracts

You can set up and use the alternate tax rate/area assignment functionality to assign a specific tax rate/area when the countries of the entities involved in a transaction are in the European Union (EU). For service contracts, the entities are the business unit and the site. When you set up your system to use the alternate tax rate/area assignment functionally, you set up an alternate tax rate/area assignment company constant and alternate tax rate/area definitions. In the company constant, you specify whether the system displays an error or warning message, or displays no message, when the tax ID or an alternate tax rate/area definition does not exist for the entities involved in a transaction.

See "Setting Up Alternate Tax Rate/Area Assignment Functionality" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.

The system uses the company of the business unit on a contract to determine if the alternate tax rate/area assignment functionality is enabled in the alternate tax rate/area assignment company constant. If the functionality is enabled, the system retrieves the alternate tax rate/area for the header of service contracts if these conditions apply:

An alternate tax rate/area definition is set up for the business unit and site of the contract.
No errors in retrieving information, such as the Tax ID is missing.
You do not manually enter a tax rate/area.

You can set a processing option in the Contract Revision program (P1721) to specify whether the system displays the header or detail form for contracts first. You can also specify how the system retrieves the tax rate/area when you copy contracts. This table describes how the system retrieves the alternate tax rate/area based on processing option values and user actions:

Processing Option or Action	Result
Display Header or Detail First processing option (set to Header)	When you set this processing option to display the header first, the system displays the Service Contract Header form. You can enter or modify the business unit and the site number. You cannot enter or modify the company; the system retrieves the company from the value in the Business Unit field. If you change the business unit or site, the system deletes the existing value for the tax rate/area. You can manually enter a tax rate/area, or click OK to have the system retrieve the default tax rate/area. If the alternate tax rate/area assignment functionality is enabled for the company, when you click OK, the system retrieves the alternate tax rate/area if the site and business unit are associated with counties in the EU, and no errors occur. If the site or business unit is not in the EU, or an warning occurs due to the validation of the alternate tax rate/area, then the system retrieves the tax rate/area based on the site. If you set up the alternate tax rate/area assignment functionality to return an error when validations fail, then the system does not retrieve a tax rate/area. The system retrieves the company for the contract based on the business unit. If you change the business unit, you might change the company on which the retrieval of the alternate tax rate/area is based. If the company changes and the new company has the functionality enabled, the system retrieves the alternate tax rate/area based on how you set up the company and the error handling in the Alternate Tax Rate/Area Assignment Constant program (P001001). If the new company does not have the alternate tax rate/area assignment functionality enabled, the system retrieves the tax rate/area based on the site.
Display Header or Detail First processing option (set to Detail)	When you set this processing option to display the header first, the system displays the Contract Revisions form first. If you change the Site in a detail line, the system clears the tax rate/area and retrieves the tax rate/area for the new site when you exit the line. If the alternate tax rate/area assignment functionality is enabled for the company of the business unit, then the system retrieves the alternate tax rate/area according to the error handling that you set up. If the setup enables the company to proceed when an error occurs, then the system retrieves the tax rate/area based on the site. If you change the site in a detail line to the site in the header, the system: Retrieves the alternate tax rate/area if the business unit and site countries are in the EU. Retrieves the tax rate/area from the header if the country of the business unit or site is not in the EU. If there is no value for the tax rate/area in the header, then the system retrieves the tax rate/area associated with the site. Retrieves the tax rate/area from the header if a validation error occurs and your system is set up to proceed when an error exits. If there is no value for the tax rate/area in the header, then the system retrieves the tax rate/area associated with the site. If a validation error occurs and your setup does not enable the system to continue when an error exists, then the system does not retrieve a tax rate/area. If you change the site in a detail line to the site that is different from the site in the header, the system: Retrieves the alternate tax rate/area if the business unit and site countries are in the EU. Retrieves the tax rate/area from the site if the country of the business unit or site is not in the EU. Retrieves the tax rate/area from the site if a validation error occurs and your system is set up to proceed when a warning exits. You specify in the company constant for the alternate tax rate/area whether to issue a warning when a validation fails. If set up for a warning, you can override the warning message and proceed with the transaction. If a validation error occurs and your setup does not enable the system to continue when an error exists, then the system does not retrieve a tax rate/area.
Tax Information = 1 (retrieve tax rate/area based on Site)	After you copy a contract, you can change values in the header and detail lines. If the alternate tax rate/area assignment functionality is enabled for the company of the business unit, and you change the business unit, then the system uses the alternate tax rate/area based on the functionality setup. If the company of the business unit does not have the alternate tax rate/area assignment functionality enabled, then the system retrieves the tax rate/area based on the site.

Processing Option or Action

Result

Display Header or Detail First processing option (set to Header)

When you set this processing option to display the header first, the system displays the Service Contract Header form. You can enter or modify the business unit and the site number. You cannot enter or modify the company; the system retrieves the company from the value in the Business Unit field. If you change the business unit or site, the system deletes the existing value for the tax rate/area. You can manually enter a tax rate/area, or click OK to have the system retrieve the default tax rate/area. If the alternate tax rate/area assignment functionality is enabled for the company, when you click OK, the system retrieves the alternate tax rate/area if the site and business unit are associated with counties in the EU, and no errors occur. If the site or business unit is not in the EU, or an warning occurs due to the validation of the alternate tax rate/area, then the system retrieves the tax rate/area based on the site. If you set up the alternate tax rate/area assignment functionality to return an error when validations fail, then the system does not retrieve a tax rate/area.

The system retrieves the company for the contract based on the business unit. If you change the business unit, you might change the company on which the retrieval of the alternate tax rate/area is based. If the company changes and the new company has the functionality enabled, the system retrieves the alternate tax rate/area based on how you set up the company and the error handling in the Alternate Tax Rate/Area Assignment Constant program (P001001). If the new company does not have the alternate tax rate/area assignment functionality enabled, the system retrieves the tax rate/area based on the site.

Display Header or Detail First processing option (set to Detail)

When you set this processing option to display the header first, the system displays the Contract Revisions form first. If you change the Site in a detail line, the system clears the tax rate/area and retrieves the tax rate/area for the new site when you exit the line. If the alternate tax rate/area assignment functionality is enabled for the company of the business unit, then the system retrieves the alternate tax rate/area according to the error handling that you set up. If the setup enables the company to proceed when an error occurs, then the system retrieves the tax rate/area based on the site.

If you change the site in a detail line to the site in the header, the system:

Retrieves the alternate tax rate/area if the business unit and site countries are in the EU.
Retrieves the tax rate/area from the header if the country of the business unit or site is not in the EU. If there is no value for the tax rate/area in the header, then the system retrieves the tax rate/area associated with the site.
Retrieves the tax rate/area from the header if a validation error occurs and your system is set up to proceed when an error exits. If there is no value for the tax rate/area in the header, then the system retrieves the tax rate/area associated with the site.
If a validation error occurs and your setup does not enable the system to continue when an error exists, then the system does not retrieve a tax rate/area.

If you change the site in a detail line to the site that is different from the site in the header, the system:

Retrieves the alternate tax rate/area if the business unit and site countries are in the EU.
Retrieves the tax rate/area from the site if the country of the business unit or site is not in the EU.
Retrieves the tax rate/area from the site if a validation error occurs and your system is set up to proceed when a warning exits.
You specify in the company constant for the alternate tax rate/area whether to issue a warning when a validation fails. If set up for a warning, you can override the warning message and proceed with the transaction.
If a validation error occurs and your setup does not enable the system to continue when an error exists, then the system does not retrieve a tax rate/area.

Tax Information = 1 (retrieve tax rate/area based on Site)

After you copy a contract, you can change values in the header and detail lines. If the alternate tax rate/area assignment functionality is enabled for the company of the business unit, and you change the business unit, then the system uses the alternate tax rate/area based on the functionality setup. If the company of the business unit does not have the alternate tax rate/area assignment functionality enabled, then the system retrieves the tax rate/area based on the site.

If you manually enter a tax rate/area in the header or detail lines, the system does not overwrite the value that you enter even if you change the business unit or site after manually entering a tax rate/area.