Reapplying Default Tax Parameters

If you make changes to the trading partner information, item or product ID, tax transaction type, or to any of the tax calculation codes, you are required to call the tax determination function again to reapply defaults based on the new values.

Preparing Fields for Updated Tax Parameters

The calling application must blank out the fields related to modified information prior to calling the tax determination function.

Change To	Calling Application Responsibilities
Trading Partner	If the custom duty is not equal to the default tax calculation code, issue a warning that the tax determination function will overwrite the tax calculation code. Blank out the tax calculation codes, use assessable value flag, tax form code, and service tax flag. Delete all rows from the tax detail table for the affected transaction lines. Blank out the tax authorities, tax transaction type and trading partner customs. Note: Taxability rules may differ for trading partners. Consequently, the Tax Determination process may blank out fields related to the item (when the new trading partner is not taxable), or populate fields related to the item (when the new trading partner is taxable), even if the item did not change.
Ship To Location (for procure to pay) or Ship From Location (for order to cash)	If the customs duty is not equal to the default tax calculation code, issue a warning that the tax determination function will overwrite the tax calculation code. Blank out the tax calculation codes, use assessable value flag, tax form code, and service tax flag. Delete all rows from the tax detail table for the affected transaction lines. Blank out customs duty applicability flags, tax location reporting currency, and tax authorities. When the Item/Product Kit Use flag is set to I (item), blank out tax categories, and chapter ID. Zero out assessable value. Note: The last step is applicable only when items are specified on the transaction line. Item tax applicability may be specified by Inventory business unit, or at the item master level. If you change the ship to or ship from location, the Tax Determination process might use a different business unit to determine taxability—a different Inventory business unit, an Inventory business unit where a product-specific business unit was previously used, or a product-specific business unit where an Inventory business unit was previously used. Consequently, the Tax Determination process must recheck the tax applicability of the item, even if the item had not changed. Note: Taxability rules may differ for business units. Consequently, the tax determination function may blank out fields related to the trading partner or item (when the new business unit is not taxable), or populate fields related to the trading partner or item (when the new business unit is taxable), even if the trading partner or item did not change.
Item or Product Kit	If the customs duty is not equal to the default tax calculation code, issue a warning that the tax determination function will overwrite the tax calculation code. Blank out the tax calculation codes, use assessable value flag, tax form code, and service tax flag. Delete all rows from the tax detail table for the affected transaction lines. Blank out the customs duty applicability flags customs and tax categories, and chapter ID. Zero out assessable value.
Tax Transaction Type	If the customs duty is not equal to the default tax calculation code, issue a warning that the tax determination function will overwrite the tax calculation code. Blank out the tax rate codes, use assessable value flag, tax form code, and service tax flag. Delete all rows from the tax detail table for the affected transaction lines. Blank out the tax authorities flags.
Tax Calculation (Rate) Code	If tax calculation code was blank, issue a warning that the tax determination function will overwrite the tax calculation code. If tax calculation code was not blank, blank out the use assessable value flag and tax form code. Delete all rows from the tax detail table for the affected transaction lines.