Understanding Vertex Tax Rules for Billing Lines

Some types of billing lines that you enter on a contract are subject to specific tax rules, as defined by the governing tax authorities associated with the contract. If you are using Vertex to calculate taxable amounts on the contract, to ensure that each billing line on the contract is taxed correctly, you might need to set up Vertex tax rules and then enter the Vertex information associated with the rule when you enter the billing line.

To set up Vertex tax rules, you use the Non-Stock Product Categories program (P7307). For each specific tax rule that you want to set up, you create a separate record using these fields as the unique identifiers for the tax rule:

• Order Type

  This field must be set to R for contract tax rules.

• Line Type

  This field must be set to N for contract tax rules.

• Vertex Product Code

  Enter a user-defined value that identifies the tax rule you want to create.

• Vertex Transaction Type

  Enter a user-defined value that identifies the tax rule you want to create.

See Understanding the Tax Process for Stock and Nonstock Items in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide for instructions and detailed information about entering records using the P7307.

After you set up this information in the P7307, you must also set up the tax rule in the Vertex Tax Decision Maker, using the values you entered in the P7307 to identify the tax rule. Refer to the Vertex user documentation for instructions.

Lastly, when you enter a billing line, you enter the Vertex Product Code and Vertex Transaction Type associated with the tax rule. Entering this information on the billing line ensures that the Vertex tax rule is used when calculating the taxable amount associated with that line.