Understanding Alternate Tax Rate/Area Assignments for Bid Contracts and Takeoffs

You can set up and use the alternate tax rate/area assignment functionality to use a specific tax rate/area when the countries of the entities involved in a transaction are in the European Union (EU).

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 definitions.
See "Setting Up Alternate Tax Rate/Area Assignment Functionality" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.
The alternate tax rate/area definitions enable you to set up different tax rate/areas based on the country of these entities:
- Company
- Lot Number
- Community
- Subcontractor
  Supplier
  Bid job number

If you set up the alternate tax rate/area assignment functionality and the countries of the entities involved in the transaction are in the EU, the system retrieves the alternate tax rate/area based on how you set up the error handling in the Alternate Tax Rate/Area Company Constant.

Errors occur when the system cannot locate a valid tax ID for the entities. When the entity is set up in the Community Phase Master table (F44H101), the system uses the address book number of the community to locate the tax ID. If the entity is not set up in the F44H101 table, the system uses the Business Unit Master table (F0006). If the Tax ID is missing from the records, then the system displays an error or warning message if you set up the Alternate Tax Rate/Area Assignment Company Constant to display a message.

This list describes how the system retrieves the tax rate/area when the functionality is enabled for the company:

If no error occurs, then the system retrieves the alternate tax rate/area if the entities involved in the transaction are in the EU.
If the entities are not in the EU, then the system uses the default tax rate/area, which is based on the lot number, community, or supplier, depending on the program retrieving the tax rate/area.
If an error occurs and the Alternate Tax Rate/Area Assignment Company Constant is not set up to display an error or warning message, the system retrieves the default tax rate/area.
If an error occurs and the Alternate Tax Rate/Area Assignment Company Constant is set up to show an error message, then the system does not retrieve any tax rate/area. The tax rate/area remains blank.
If you set up the error handling to issue a warning message, you can override the message to have the system retrieve the default tax rate/area.

Some programs in the JD Edwards EnterpriseOne Homebuilder Management system enable you to change the tax rate/area or entities for a transaction. Other programs in the system do not enable direct changes, but are affected by the alternate tax rate/area assignment functionality. This table describes how the alternate tax rate/area assignment functionality affects programs in the JD Edwards EnterpriseOne Homebuilder Management system:

Program	Comments
Work With Bids (P44H601)	This program uses the subcontractor and bid job number as the entities for which you can set up the alternate tax rate/area assignment functionality. If you enter or change values in the Subcontractor and Bid Job Number fields and leave the Tax Rate/Area field blank, the system retrieves the alternate tax rate/area when you click OK on the Bid Header Revision form. When you update a header record and the system retrieves a new tax rate/area, the system recalculates taxes and copies the new values to existing bid detail lines. You cannot change the subcontractor or bid job number on the Bid Detail Revision form, but you can change the tax rate/area. When you copy bid details, you can change the Subcontractor and Bid Job Number fields in the header area of the Bid Detail Revision form. If you change the values, the system retrieves the alternate tax rate/area associated with the new subcontractor or bid job number and recalculates the taxes.
Material Item Pricing (P44H603)	This program uses the community and supplier as the entities for which you can set up the alternate tax rate/area assignment functionality. If the item is taxable and you change the values for the Community/Phase or Supplier fields in the header area of the Item Price Revisions form, the system deletes the existing values from the Tax/Rate Area field and then repopulates it with the alternate tax rate/area associated with the changed values when you click OK.

Program

Comments

Work With Bids (P44H601)

This program uses the subcontractor and bid job number as the entities for which you can set up the alternate tax rate/area assignment functionality. If you enter or change values in the Subcontractor and Bid Job Number fields and leave the Tax Rate/Area field blank, the system retrieves the alternate tax rate/area when you click OK on the Bid Header Revision form. When you update a header record and the system retrieves a new tax rate/area, the system recalculates taxes and copies the new values to existing bid detail lines.

You cannot change the subcontractor or bid job number on the Bid Detail Revision form, but you can change the tax rate/area.

When you copy bid details, you can change the Subcontractor and Bid Job Number fields in the header area of the Bid Detail Revision form. If you change the values, the system retrieves the alternate tax rate/area associated with the new subcontractor or bid job number and recalculates the taxes.

Material Item Pricing (P44H603)

This program uses the community and supplier as the entities for which you can set up the alternate tax rate/area assignment functionality. If the item is taxable and you change the values for the Community/Phase or Supplier fields in the header area of the Item Price Revisions form, the system deletes the existing values from the Tax/Rate Area field and then repopulates it with the alternate tax rate/area associated with the changed values when you click OK.