How Tax Zones Work in Tax Rules

Geography determination factors allow you to use geography elements in the tax rules. The determination factors include a combination of determination factor class, class qualifier, and determining factor.

Tax Zones in Tax Rules

Use geography as the determining factor class, location type on the transaction as the class qualifier, and tax zone type such as county, as the determining factor.

The tax determining factors for locations are given generic names such as ship-to and bill-from, depending on the transaction types.

These generic locations are mapped to the specific location based on the transaction as shown in the following table:

Generic Party	Order-to-Cash Party	Procure-to-Pay Party
Bill-from party	First-party legal entity	Supplier
Bill-to party	Customer	First-party legal entity
Ship-to party	Customer (ship to) party site	First-party legal entity
Ship-from party	First-party legal reporting unit	Supplier (ship from) party site
Point of acceptance party	Customer point of acceptance party	Not applicable
Point of origin party	Customer point of origin party	Not applicable

You can also use tax zones as tax rule qualifiers.