Understanding Tax Considerations for Payment Terms with Discounts
If a voucher or invoice has taxes, the system uses the tax rules that are set up for the company entered on the invoice or voucher. If tax rules are not set up for the company specified, the system uses the tax rules that are set up for the default company 00000.
The system does not process transactions with discounts if the tax rules for the company specified are set up with the Tax on Gross Excluding Discount option selected on the Tax Rules form. This applies to standard payment terms with discounts as well as advanced payment terms with multitiered discounts.