Alternate Tax Rate/Area Assignment Functionality in the Shipment Confirmation Process
You can use the alternate tax rate/area assignment functionality when the entities involved in the shipment are in the European Union and the company is set up to use the alternate tax rate/area assignment functionality.
When you run the Shipment Confirmation program and modify the ship-to or branch/plant value, the system checks whether the alternate tax rate/area assignment functionality is enabled for the entities. If the functionality is enabled, the system:
Checks whether the alternate tax rate/area assignment functionality is enabled for the company.
Verifies that the VAT registration number (Tax ID) exists for the Branch/Plant and Ship To entities.
Retrieves the sales order tax rate/area from the alternate tax rate/area assignment setup based on the Branch/Plant and Ship To country codes.
The Shipment Confirmation form includes a field for the tax rate area. If you modify a record for which the alternate tax rate/area assignment functionality is active, the system updates the tax rate/area. The system also recalculates the taxed unit price if the tax rate/area changes.