How You Set Up Tax Status Controls and Defaults

Set up the required tax statuses that you need for each tax that you create for a combination of tax regime, tax, and configuration owner.

Define a tax status for a tax and a configuration owner, and define all applicable tax rates and their effective periods for the tax status. The tax status controls the defaulting of values to its tax rates.

Defining Controls and Defaults

The following table describes the defaults and controls available at the tax status level.

Header Region

Field	Description	Default Derived from	Default Appears on	Controls
Set as default tax status	Controls whether this tax status is defined as the default tax status for this tax	None	None	If selected then this tax status is defined as the default tax status for this tax. Where no tax status rules are applicable then the tax determination process selects this tax status as the applicable tax status for transactions in the date range defined.

Tax Information Region

Field	Description	Default Derived from	Default Appears on	Controls
Default Settlement Option	Lookup code to indicate whether an input tax is recovered when an invoice is recorded or only when the invoice is paid and whether an output tax is due for settlement when the invoice is issued or only when the payment is received against it	Tax	Tax rate	None
Allow tax exceptions	Controls whether tax exceptions are allowed for this tax	Tax	Tax rate	None
Allow tax exemptions	Controls whether tax exemptions are allowed for this tax	Tax	Tax rate	None
Allow tax rate override	Controls whether you can override the tax rate at transaction time	None	Tax rate	None