Tax Rate Code Source

When you define a receivables activity, you use the Tax Rate Code Source to indicate how Receivables allocates tax amounts for the activity.

Tax Rate Code Source Options

None

Allocates the entire tax amount according to the GL Account Source you specified. You use this option if you don't want to account for tax separately.

Activity

Allocate the tax amount to the asset or liability tax accounts specified by the activity.

Invoice

Distribute the tax amount to the tax accounts specified by the tax rate code on the invoice. You can't choose this option if the activity type is Miscellaneous Cash or Late Charges.

Enable the Recoverable option to indicate that the tax for this activity is recoverable. Don't enable this option if tax is nonrecoverable.

Note: In the event of a tax adjustment to an invoice with zero amount tax distributions, you can’t set the adjustment activity Tax Rate Code Source to Invoice.