Understanding of Tax Minimums

You can specify a minimum value that will determine whether a tax should be applied. You can specify minimums by tax code or by invoice amount. Only one minimum can be used, whether it be the invoice minimum or the tax code minimum. Both are set up by using effective dates.

If you specify minimums by tax code, the system uses the invoice total to calculate the tax value and the resulting tax value is compared to the minimum; this comparison is then used to determine whether the tax should be applied to the invoice.

Note: Changing the tax percentage can affect the minimum.

The system generates an error “Tax Area with Perception" and the invoice will not be generated if the minimum invoice total amount setup in P76A10 (Taxes Minimum and Taxes Minimum by Invoice) is greater than the total taxable base amount for all the pay items in the invoice.