Setting Up the Tax Derivation Table

Access the Tax Derivation Revisions form.

Tax Rate/Area

Enter a code that identifies the tax or geographic area that has the appropriate tax rate and tax authority. The system validates the code you enter against the Tax Areas table (F4008). The system uses the tax rate area in conjunction with the tax explanation code and tax rules to calculate tax and G/L distribution amounts when you create an invoice or voucher.

You can specify a tax rate and area or enter one of these values:

*CC: Use the tax rate and area and tax explanation code from the business unit.

*WO: Use the tax rate and area and tax explanation code from the work order.

Tax Expl Code (tax explanation code)

Enter a code from UDC 00/EX that controls the algorithm that the system uses to calculate tax and G/L distribution amounts. The system uses the tax explanation code in conjunction with the tax rate area and tax rules to determine how the tax is calculated. Each transaction pay item can be defined with a different tax explanation code.

Note:

You complete the Object From, Object Thru, Subsidiary From, and Subsidiary Thru fields to specify the account range for the rule.

You complete the Tax Rate/Area and Tax Expl Code fields to specify the tax information for the rule.