Example of Defining an Exception to the Tax Registration Tax Rule Default

Set a tax rule default value to the most commonly used value to determine tax. Use tax rules to define exceptions to the default results.

The following scenario illustrates when you might want to create a tax rule to provide additional logic when calculating tax.

Defining a Tax Registration Tax Rule

In the case of tax registration, the default or most commonly used value for registration party is ship-from party. However, you can set up a tax rule to provide additional logic to use the registration of the bill-to party if the registration status is Not Registered for the ship-from party for purchase transactions. Create:

• A determining factor set with the registration status and transaction business category determining factors.

• Condition sets to provide values for the respective determining factors.

For this example, the following setup exists for the Determine Tax Registration tax rule:

• Tax rule default: The default for tax registration is ship-from party.

• Tax rule: If the supplier is not registered, then you should consider the tax registration of the bill-to party.

When the following conditions are true, then the tax registration is the same as that defined for the bill-to party:

Tax Determining Factor Class	Tax Class Qualifier	Tax Determining Factor	Operator	Value
Registration	Ship-from party	Registration status	Equal to	Not registered
Transaction Generic Classification	Level 1	Transaction business category	Equal to	Purchase transaction

The tax determination process determines the tax registration by first considering the Determine Tax Registration tax rule and then the default party registration. As a result of this rule, for a purchase transaction, if the supplier is not registered, the tax registration of the bill-to party is considered.