Entering Tax Information for an Order

Access the Contract Header form.

Tax Expl Code (tax explanation code)

Enter a hard-coded UDC (00/EX) that controls the algorithm that the system uses to calculate tax and general ledger distribution amounts.

The system uses the tax explanation code in conjunction with the tax rate area and tax rules to determine how the tax is calculated. Each transaction pay item can be defined with a different tax explanation code.

Tax Rate/Area

Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities.

The system validates the code that you enter against the Tax Areas table (F4008). The system uses the tax rate area in conjunction with the tax explanation code and tax rules to calculate tax and general ledger distribution amounts when you create an invoice or voucher.

Certificate

Enter the number that tax authorities issue to tax-exempt individuals and companies to identify their tax-exempt status.

Note: You can override the tax information when you enter the purchase order or match it to the voucher.