Tax Rates Controls and Defaults

Set up tax rates for your tax statuses and optionally for tax jurisdictions.

For tax statuses, set up a tax rate record for each applicable tax rate that a tax status identifies. For tax jurisdictions, optionally set up tax rate records to identify the tax rate variations for a specific tax within different tax jurisdictions.

Defining Controls and Defaults for Tax Rates

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

Header Region

Field	Description	Default Derived from	Default Appears on	Controls
Tax Rate Type	Lookup code that controls the type of tax rate. Values are: Percentage: The tax rate is a percentage based on the line value Quantity: The tax rate is based on the currency per UOM such as USD per kilo	None	None	Defines whether the tax rate is either percentage or quantity based
Tax Classification Code Set Assignments Order to cash Procure to pay Expenses	Controls where tax classification codes that are created in parallel to the creation of the tax rate are available for use	None	None	If selected, then the tax classification code associated with this tax rate is available for use in order to cash, procure to pay, and expenses transactions

Rate Periods Region

Field	Description	Default Derived from	Default Appears on	Controls
Set as Default Rate	Controls whether this tax rate is the default rate for the defined tax status for the period specified	None	None	If selected then this tax rate is the default tax rate for the defined tax status for the period specified. Where there are no tax rate rules applicable at transaction time then the tax determination process selects this tax rate where the associated tax status is derived during the period specified.

Main Details Tab, Other Details Region

Field	Description	Default Derived from	Default Appears on	Controls
Tax Inclusion Method	Defines whether the tax is: Standard noninclusive handling: This option calculates the taxes as exclusive of the given transaction line amount Standard inclusive handling: This option calculates the taxes as inclusive of the given transaction line amount Special inclusive handling: This option calculates the taxes as inclusive of the given transaction line amount, but the calculation methodology differs from the standard inclusive process	None	None	Use this option in conjunction with other setup on tax, party tax profile, tax registration, and transaction details to control the inclusiveness of a line amount at transaction time
Allow override and entry of inclusive tax lines	Controls whether you can override and enter inclusive or exclusive line amounts	Tax	None	Use this option in conjunction with the Transaction Tax Line Override profile option as well as Allow override of calculated tax lines and Allow override and entry of inclusive tax lines options for the configuration owner tax options to allow you to update the Inclusive option on tax line at transaction time
Allow tax exceptions	Controls whether tax exceptions are allowed for this tax	Tax status	None	If this option is selected tax exceptions can be processed at transaction time
Allow tax exemptions	Controls whether tax exemptions are allowed for this tax	Tax status	None	Use this option in conjunction with the Allow exemptions option on the configuration owner tax options and when both are selected allows tax exemptions to be processed at transaction time
Allow ad hoc tax rate	Controls whether you can enter ad hoc tax rates at transaction time	None	None	Use this option in conjunction with Transaction Tax Line Override profile option and the Allow override of calculated tax lines option for the configuration owner tax options. If all are selected, you can enter tax rates.
Adjustment for Ad Hoc Tax Amounts	Lookup code that's used when you select the Allow ad hoc tax rate option	None	None	When the Allow ad hoc tax rate option is selected the lookup value in this field controls how the application controls the change in tax value, either as a change to the taxable basis or to the tax rate value used
Tax Point Basis	Specify the event that's the basis for tax recovery or liability. This event is also the basis on which tax is considered for reporting.		None