1. Procurement Management Implementation Guide
  2. Alternate Tax Rate/Area Assignment Functionality for Purchase Order Headers

Alternate Tax Rate/Area Assignment Functionality for Purchase Order Headers

You can set up the company, the branch/plant of the company, the ship-to, and supplier entities to use the alternate tax rate/area assignment functionality. When you add or modify a purchase order with one of these entities, the system:

  • Checks whether the alternate tax rate/area assignment functionality is enabled for the company of the branch/plant.

  • Verifies that the VAT registration number (Tax ID) exists for the Ship To and Supplier entities.

  • Retrieves the purchase order tax rate/area from the alternate tax rate/area assignment setup based on the Branch/Plant, Ship To, and Supplier country codes.

If the branch/plant belongs to a company with the alternate tax rate/area assignment company constant enabled, the system assigns the alternate tax rate/area assignment based on the ship-to and supplier companies, and the branch/plant information. Otherwise, the system uses the default tax rate/area you set up in a processing option.

On the Order Header form, the system:

  • Retrieves the alternate tax rate/area when the business unit that you enter in the Branch/Plant field corresponds to a company for which you have set up the alternate tax rate/area assignment functionality, and the ship-to and supplier specified are also set up to use the functionality. If the company of the branch/plant is not set up to use the alternate tax rate/area assignment functionality, then the system retrieves the tax rate/areas according to the value you set in the Default Tax/Rate Area processing option.

  • Updates the value in the Tax Rate/Area field if you change the Supplier or Ship To values. If you leave the Ship To field blank and then click OK, the system retrieves the ship to value from the branch/plant setup.

  • Recalculates the tax rate/area if you modify the Supplier or the Ship To fields after you manually change the Tax Rate/Area field.

    Does not update the Tax Rate/Area field if you manually change the Tax Rate/Area value after changing the Supplier or Ship To fields.

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