1. Using Tax
  2. Tax Calculation on Delivery Transactions Using Tax Point Basis

Tax Calculation on Delivery Transactions Using Tax Point Basis

Tax calculation can be configured for your delivery transactions using the tax point basis to meet your legal and business requirements.

Following are the delivery transactions that are subject to tax determination:

  • Goods receipt

  • Receipt corrections

  • Return to supplier

  • Consumption

  • Goods shipment

Goods Receipt

Use the configuration owner tax options for payables standard invoices to determine how taxes are calculated on a goods receipt. If taxes are not configured for receipts, the receipt accounting process references the corresponding purchase order taxes to create accrual distributions for the nonrecoverable taxes.

The setup options are as follows:

  • If the Allow delivery-based tax calculation option is enabled, taxes are not calculated on the receipt.

  • If the Allow delivery-based tax calculation option is enabled, and the Report Delivery-Based Taxes on option is set to Receipt, taxes are calculated on the receipt based on the tax attributes. Taxes are reported with a tax point basis of Delivery except for receipts against a consignment purchase.

Note: If either of the following two options is set on the purchase order, taxes are not calculated on the receipt under any conditions:

Receipt Corrections

Taxes are recalculated based on the corrected quantity using the transaction date of the original receipt.

Return to Supplier

Taxes are prorated based on the original receipt, and they are reported with a tax point basis of Delivery. The original receipt shows the adjusted values.

Consumption

Taxes are prorated based on the receipt transaction of the consigned goods. Since this transaction reflects transfer of ownership of consigned goods that are already received and registered, taxes with a tax point basis of Delivery are reported.

Goods Shipment

Taxes are not calculated for a goods shipment transaction, including return shipments using return material authorizations. Taxes are calculated based on the corresponding receivables invoice.