Tax Point Basis Hierarchy

The tax point basis is used to identify the appropriate date to account and report your transaction taxes to the tax authorities. During tax calculation, the application determines the tax point basis based on what level you defined the tax point options.

The following table describes the order used for processing the tax point basis on a tax line. The application considers the tax point basis at the first level and if the tax point basis is blank, the process moves to the next level in the hierarchy.

Level	Action
Tax registration rule	The rule conditions based on various transaction attributes are considered in determining the required tax point basis value for the tax.
Tax rate	The tax rate period processed for a tax from the tax rate rule is considered in determining the tax point basis value for the tax. The tax point basis is driven by the legal requirements specified for different tax rate types.
Tax registration	The tax registration of the registration party is considered in determining the required tax point basis value for the tax. The registration party is derived from the tax registration rules. However, first the application determines: The corresponding tax registration based on the registration number on the transaction header. If no registration number exists, then uses the available registration records for that party. The tax point basis is dependent on specific requirements driven by the registration number provided by the tax authorities.
Tax	The tax point basis value specified for the tax is considered. All tax rate codes you define for this tax use this tax point basis value.

To apply a tax point basis across all transactions within an event class and for a specific business unit or legal entity, define the tax point basis as part of the configuration owner tax options.