Alternate Tax Rate/Area Assignment Functionality

When you set up your system to use the alternate tax rate/area assignment functionally, you set up these components:

• Alternate tax rate/area assignment company constant.

  If you enable the constant, you also specify whether the system sets 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.

• Alternate tax rate/area definition.

  The alternate tax rate/area definitions enable you to set up different tax rate/areas based on the country of the ship from address (supplier) and the country of the ship to address (business unit or branch/plant of the company).

If the alternate tax rate/area assignment functionality is not enabled, when you enter the company and supplier in the header area of a voucher, the system retrieves the business unit from the supplier master record. In this situation, you can change the business unit if necessary.

If the alternate tax rate/area assignment functionality is enabled, the system retrieves the tax rate/area based on how you have the error handling set up in the tax rate/area assignment definition. This table describes the how the system retrieves the tax rate/area:

Error Handling Setup	Condition	Result
No warning or error message	N/ A	When the supplier and company are European Union (EU) countries, the system retrieves the alternate tax rate/area. If the company business unit or the supplier are not in EU countries, the system retrieves the tax tax rate/area associated with the business unit, or with the supplier if no tax rate/area is assigned to the business unit.
Warning	No error exists	When the supplier and company are European Union (EU) countries, the system retrieves the alternate tax rate/area. If the company business unit or the supplier are not in EU countries, the system regives the tax rate area associated with the item.
Warning	Error exists	The system displays an error message and enables you to continue. If you continue, the system retrieves the tax rate/area associated with the business unit. If no tax rate/area is associated with the business unit, the system retrieves the tax rate/area associated with the item.
Error	No error exists	When the supplier and company are European Union (EU) countries, the system retrieves the alternate tax rate/area. If the company business unit or the supplier are not in EU countries, the system regives the tax rate area associated with the supplier. If no tax rate/area is associated with the business unit, the system retrieves the tax rate/area associated with the item.
Error	Error exists	The system does not retrieve a tax rate area. You must correct the error and re-enter the voucher.

If the alternate tax rate/area assignment functionality is enabled for the company, you cannot change the business unit of the transaction when you modify a line using the Additional Info form. If the company constant is enabled, the system disables the business unit field, and retrieves the tax rate/area based on the alternate tax rate/area assignment setup. If the alternate tax rate/area assignment functionality is not enabled, you can change the business unit by accessing the Additional Info form from the Form menu. If you modify the business unit on the Additional Info form, the system uses the new business unit for only new lines added to the voucher after the modification is saved for the voucher. The system does not retrieve the tax rate/area of the lines already entered before you modified the business unit on the Additional Info form.

For further information about alternate tax rate/area assignments, refer to "Setting Up Alternate Tax Rate/Area Assignment Functionality" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.