Example of Enabling Taxes for Transactions and Simulation

On a tax record, you specify whether the tax is enabled for transactions, simulation, or both.

When you create a simulator transaction, you can select which types of taxes to evaluate for applicability: taxes enabled for simulation only, taxes enabled for transactions only, or both.

Scenario

You have two taxes defined that both evaluate to true for a particular Purchase invoice.

The first tax, FUS_CA, is defined for the sales tax for the state of California. The tax status is set to Enable tax for simulation and Enable tax for transactions. The second tax, FUS_ENV, is defined for an environmental tax. The tax status is set to Enable tax for simulation.

Simulate a live transaction in the Tax Simulator with the Evaluate Taxes option set to Enabled for transactions. In this case, only taxes enabled for transactions are processed so the FUS_CA is the only tax calculated.

Next, update the Evaluate Taxes option set to Enabled for simulation. In this case, only taxes that are enabled for simulation are processed so FUS_ENV is the only tax calculated.

Finally, update the Evaluate Taxes option set to Enabled for transactions and simulation. In this case, both taxes enabled for simulation and enabled for both simulation and transactions are selected so both FUS_CA and FUS_ENV are calculated.