How You Classify Items for Golden Tax

VAT invoices for China classify items on invoice lines by item model and tax denomination.

These attributes are defined as:

• Item Model: Model number of the item.

• Tax Denomination: Classification of taxable items that identifies the tax rate to use for the item.

Maintain attribute information for item models and tax denominations in this way:

• Define item model and tax denomination attributes for the Master Items flexfield to enter values for these attributes when you create a new item.

• At the transaction line level:

  • Use the product fiscal classification to define item model for inventory items.

  • Use the product category fiscal classification to define item model for non-inventory items.

  • Use the transaction business category to define tax denomination.

When you transfer receivables transactions to the Golden Tax Adaptor, the Golden Tax Adaptor looks for item model and tax denomination values assigned to VAT-related system options in this order:

1. Transaction lines.

2. Master item:

   1. If Item Validation Organization is set as a Master Inventory Organization, the process retrieves the item model and tax denomination from the related descriptive flexfield defined at Master INV ORG level.

   2. If Item Validation Organization is set as an Inventory Organization, the process retrieves the item model and tax denomination from the related descriptive flexfield defined at INV ORG level.

3. If the transfer process can't find a tax denomination value in either transaction lines or master items, it inserts the value 0.