Example of Reviewing Tax Rule Details for Simulated Transaction Lines
For the tax lines associated with each transaction line, you can review the tax rule details that are specific to each tax line, such as:
-
Rule results
-
Rule conditions
-
Tax rules process results
Scenario
Rule Results
When a tax rule is applied, you can determine the associated tax rule from the Rule Results table. For example, the following table shows the attributes displayed in the Rule Results table:
|
Rule Type |
Result Type |
Result |
Rule Code |
Rule Order |
|---|---|---|---|---|
|
Determine Place of Supply |
Default |
Ship to |
||
|
Determine Tax Applicability |
Default |
Applicable |
||
|
Determine Tax Registration |
Rule based |
Ship-to party |
REGRULE2 |
20 |
In this example, the tax determination process determines the:
-
Place of supply and tax applicability using the defaults.
-
Tax registration based on a tax rule, the applicable tax rule code is REGRULE2.
The tax determination process uses defaults to determine the place of supply and tax applicability. However, the tax determination process determines the tax registration based on a tax rule. The applicable tax rule code is REGRULE2.
Rule Conditions
In the Determine Tax Registration: Rule Conditions table, select the Determine Tax Registration row to review the rule conditions that are successfully evaluated.
If your transaction is calculating tax lines for a tax that is not applicable, review the Determine Tax Applicability rule values in the Rule Results table for that tax line. If the Result Type is Default with a result of Applicable, verify that you have a Determine Tax Applicability tax rule that evaluates your transaction as not applicable.
Tax Rules Process Results
Assume that the Determine Tax Registration rule type has three associated tax rules as represented in the following table:
|
Rule Code |
Process Result |
Evaluation Order |
Rule Order |
|---|---|---|---|
|
REGRULE1 |
Failed |
1 |
10 |
|
REGRULE2 |
Successful |
2 |
20 |
|
REGRULE3 |
Not evaluated |
3 |
30 |
In this example, the tax rule with the highest rule order priority failed, while the rule with the next highest rule order priority is successful. In this case of three associated tax rules, the tax determination process doesn't evaluate the remaining tax rule.