Understanding Tax Derivation Rules

Set up tax derivation rules to specify the tax information that you want the system to apply to work order transactions. If you do not set up tax derivation rules, the system uses the tax information that you specify in the work order information. If you did not specify tax information in the job master information, the system uses the information in the job master and if not in the job master, then it will use the customer master.

To set up tax derivation rules, you must specify the:

• Key type and table key.

• Effective date range.

• Object and subsidiary account ranges.

When you accumulate costs or revise workfile transactions, the system applies the appropriate tax rules to each transaction based on the key information that you specify for the rule.