Understanding the Tax Determination Process

When an application calls the tax determination function, the process compares the ship from and ship to country, and performs the following for each row the calling application passes:

1. If the ship from and ship to country are not the same.

2. If the tax transaction type is defined as Interunit Transfer, no customs duty is applicable.

3. If the ship from and ship to country are the same:

   1. The process checks the Business Unit Tax Applicability table to determine whether the business unit is customs duty applicable.

      If the business unit is not applicable for either type of tax, the function marks the appropriate tax applicable flags as No and exits.

   2. If the business unit is tax applicable, the process checks the trading partner tax applicability table to determine if the trading partner is customs duty applicable.

      If tax is applicable, the process retrieves the default tax transaction type and the trading partner's tax category. If the tax is not applicable to the trading partner for either type of tax, the function marks the appropriate tax applicable flags as No and exits.

   3. If both the business unit and the trading partner are tax applicable, and if an item or product ID were provided by the calling application, the process checks the item or product tax applicability table to determine if the item or product is customs duty applicable.

      If tax applicable, the process retrieves the item tax category. If the item or product is not applicable for any type of tax, the function marks the appropriate tax applicable flags as No and exits.

   4. If the business unit, trading partner, and item or product (if applicable) are all customs duty applicable, the process:

      Checks the Tax Determination table to determine the tax calculation code applicable for customs duty.

      Accesses the Tax Rate Code table and inserts a row into the Tax Detail child rowset for every tax detail row associated with the tax calculation code.