Tax Information
When you enter sales orders with taxes, you can enter the tax information directly on the sales order or set up default values that the system uses during the entry process. Default tax values include the tax rate/area and tax explanation code, and can be set up in the customer record or in the business unit record (tax rate/area only). Regardless of whether you establish default values, you can override the tax information when you enter the sales order.
The system uses tax defaults that you set up in the customer record when you enter a sales order. When you enter direct ship, transfer orders, or sales orders with different sold-to or ship-to addresses, the system retrieves the tax rate/area from the ship-to address and the tax explanation code from the sold-to address.