How Tax Zones Work in Tax Rules
Geography determination factors allow you to use geography elements in the tax rules. The determination factors include a combination of determination factor class, class qualifier, and determining factor.
Tax Zones in Tax Rules
Use geography as the determining factor class, location type on the transaction as the class qualifier, and tax zone type such as county, as the determining factor.
The tax determining factors for locations are given generic names such as ship-to and bill-from, depending on the transaction types.
These generic locations are mapped to the specific location based on the transaction as shown in the following table:
Generic Party |
Order-to-Cash Party |
Procure-to-Pay Party |
---|---|---|
Bill-from party |
First-party legal entity |
Supplier |
Bill-to party |
Customer |
First-party legal entity |
Ship-to party |
Customer (ship to) party site |
First-party legal entity |
Ship-from party |
First-party legal reporting unit |
Supplier (ship from) party site |
Point of acceptance party |
Customer point of acceptance party |
Not applicable |
Point of origin party |
Customer point of origin party |
Not applicable |
You can also use tax zones as tax rule qualifiers.