Define Receipt Tax Options

Taxes on receipt are handled during the Receipt Accounting Distribution process. This treatment is defined as the receipt tax options in the Payables application for the Standard Invoices event class.

This table describes the tax option configuration and tax treatment for fiscal documents associated with purchase orders:

Receipt Tax Options

Allow Delivery-Based Tax Calculation	Report Delivery-Based Taxes	Tax Point Basis	Purchase Order Invoice Match Option	Tax Treatment at the Time of Receipt Accounting
Yes	Receipt	Delivery	Receipt	Taxes are calculated. Only the taxes from the corresponding fiscal document are prorated across the receipt quantity. If the tax point basis of a tax is set to Delivery, then the tax recovery amount is also accounted.

To define the receipt tax options, follow these steps:

1. From the Setup and Maintenance work area, navigate to the Manage Configuration Owner Tax Options task.
2. Click Create.
3. In the Create Configuration Owner Tax Options page, select the configuration owner as the legal entity or business unit that owns the tax content.
4. Select the event class as Standard Invoices from Payables application.
5. In the Receipt Tax Options region, select the Allow delivery-based tax calculation check box, to make the receipt tax options available for entry.
6. Select Report Delivery-Based Taxes on receipt, according to the configuration described in the previous table.
7. Click Save and Close.