Alternate Tax Rate/Area Assignment for Sales Orders
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 definition.
The alternate tax rate/area definitions enable you to set up different tax rate/areas based on the country of the ship from address (supplier) and the country of the ship to address (business unit or branch/plant of the company).
If the alternate tax rate/area assignment functionality is not enabled, then the system retrieves the tax rate/area from the customer (ship-to address) set up.
If the alternate tax rate/area assignment functionality is enabled, the system retrieves the tax rate/area based on:
The error handling set up in the tax rate/area assignment definition.
The action that you perform, such as adding header information or copying detail information.