Alternate Tax Rate/Area Assignment Functionality in Contracts

The alternate tax rate/area assignment functionality enables you to assign an alternate tax rate/area when the countries of the entities involved in a transaction are in the European Union (EU). This list describes the entities for contract transactions:

Company of the project or job
Project/Job (origin of the transaction)
Customer (destination of transaction)

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

You use the Suppress Tax Information processing option to control whether the Contract Master Revisions program (P5201) displays tax information for the contract. If you enter 1 to suppress tax information, then the program does not retrieve or display the tax rate/area. If you leave the processing option blank, then the program retrieves the alternate tax rate/area assignment when these factors apply:

The alternate tax rate/area assignment functionality is enabled for the company.
Valid VAT registration numbers (Tax ID) exist in the system for the origin and destination sites.
The country codes for the entities are valid and are in the European Union.

The Contract Master Revisions program enables you to change the company, project/job, and customer when you add a contact; and enables you to change the project/job and customer when you modify a saved contract.

This table describes how the system retrieves the tax rate/area when you change the Company when adding a contract:

Alternate Tax Rate/Area Functionality for Original Company	Alternate Tax Rate/Area Functionality for New Company	Header Tax Rate/Area
Disabled	Disabled	If you enter a tax rate/area, the program uses the value you enter. If you leave the Tax Rate/Area field blank, then the system retrieves the tax rate/area associated with the project or customer when you click OK on the Contract Master Revisions form.
Either disabled or enabled	Enabled	If you enter a tax rate/area, the program uses the value you enter. If you leave the Tax Rate/Area field blank, then when you click OK on the Contract Master Revisions form, the system: Retrieves the alternate tax rate/area assignment when the project and customer countries are in the EU and no errors occur. Retrieves the tax rate/area of the project or customer if the countries are not in the EU. Retrieves the tax rate/area of the project or customer when an error prevents the system from retrieving the alternate tax rate/area and the error handling is set up to suppress warning and error messages. Leaves the Tax Rate/Area field blank when the system cannot retrieve the alternate tax rate/area assignment due to an error and the error handling is set up to display a message.
Enabled	Disabled	If you enter a tax rate/area, the program uses the value you enter. If you leave the Tax Rate/Area field blank, the program retrieves the tax rate/area associated with the project.

Alternate Tax Rate/Area Functionality for Original Company

Alternate Tax Rate/Area Functionality for New Company

Header Tax Rate/Area

Disabled

If you enter a tax rate/area, the program uses the value you enter. If you leave the Tax Rate/Area field blank, then the system retrieves the tax rate/area associated with the project or customer when you click OK on the Contract Master Revisions form.

Either disabled or enabled

Enabled

If you enter a tax rate/area, the program uses the value you enter.

If you leave the Tax Rate/Area field blank, then when you click OK on the Contract Master Revisions form, the system:

Retrieves the alternate tax rate/area assignment when the project and customer countries are in the EU and no errors occur.
Retrieves the tax rate/area of the project or customer if the countries are not in the EU.
Retrieves the tax rate/area of the project or customer when an error prevents the system from retrieving the alternate tax rate/area and the error handling is set up to suppress warning and error messages.
Leaves the Tax Rate/Area field blank when the system cannot retrieve the alternate tax rate/area assignment due to an error and the error handling is set up to display a message.

Enabled

Disabled

If you enter a tax rate/area, the program uses the value you enter.

If you leave the Tax Rate/Area field blank, the program retrieves the tax rate/area associated with the project.

You can change the project/job in the contract header when you modify an existing contract. The project or job is a business unit associated with the company. If you change the value for the project/job to a value associated with a different company, the system determines whether the new company has the alternate tax rate/area assignment functionality enabled.

Note: The Contract Master Revisions program does not change the project/job in the detail lines when you change the value in the contract header.

This table describes how the system retrieves the tax rate/area:

Alternate Tax Rate Area Assignment Functionality	Header Tax Rate/Area
Disabled	If you enter a tax rate/area, the program uses the value you enter. If you leave the Tax Rate/Area field blank, the program retrieves the tax rate/area associated with the project.
Enabled	If you enter a tax rate/area, the program uses the value you enter. If you leave the Tax Rate/Area field blank, the program: Retrieves the alternate tax rate/area assignment when the project and customer countries are in the EU and no errors occur. Retrieves the tax rate/area of the project or customer if the countries are not in the EU. Retrieves the tax rate/area of the project or customer when an error prevents the system from retrieving the alternate tax rate/area and the error handling is set up to suppress warning and error messages. Leaves the Tax Rate/Area field blank when the system cannot retrieve the alternate tax rate/area assignment due to an error and the error handling is set up to display a message.

Alternate Tax Rate Area Assignment Functionality

Header Tax Rate/Area

Disabled

If you enter a tax rate/area, the program uses the value you enter.

If you leave the Tax Rate/Area field blank, the program retrieves the tax rate/area associated with the project.

Enabled

If you enter a tax rate/area, the program uses the value you enter.

If you leave the Tax Rate/Area field blank, the program:

Retrieves the alternate tax rate/area assignment when the project and customer countries are in the EU and no errors occur.
Retrieves the tax rate/area of the project or customer if the countries are not in the EU.
Retrieves the tax rate/area of the project or customer when an error prevents the system from retrieving the alternate tax rate/area and the error handling is set up to suppress warning and error messages.
Leaves the Tax Rate/Area field blank when the system cannot retrieve the alternate tax rate/area assignment due to an error and the error handling is set up to display a message.