Tax Information for a Detail Line
You can enter tax information that is specific to a detail line. This tax information determines whether taxes apply to the items or services on the detail line, and how the system calculates the taxes.
The system retrieves default tax information for each detail line based on the tax information that you entered for the order. If tax information for the detail line differs from that for the rest of the order, you can change the tax information to accommodate the detail line. You can use the alternate tax rate/area assignment functionality when the entities in the transactions are in the European Union and the company of the transaction is set up to use the alternate tax rate/area assignment functionality.
See Alternate Tax Rate/Area Assignment Functionality in Purchase Order Detail Lines
If you are using the Vertex Sales Tax Q Series system with JD Edwards EnterpriseOne software, the system retrieves default GeoCodes to determine the tax rate to apply to the order.