Single Nexus Validation on Transactions

The single nexus validation in SuiteTax ensures tax compliance by enforcing that each transaction has only one nexus when you use line-level locations or line-level shipping.

Single nexus validation occurs on a transaction in the following cases:

• The Multiple Shipping Routes feature is enabled, and you have checked the Enable Item Line Shipping box on the transaction.

• The transaction form includes the Location field at the line level.

NetSuite determines the nexus for the first item line on the transaction. This is called the transaction nexus. NetSuite then validates that all subsequent item lines use the same nexus.

• If all item lines use the same nexus, you can save the transaction.

• If any item line uses a different nexus, the system prevents you from adding the line item with a different nexus. You must then move the item line to a separate transaction.

The following examples show how the single nexus validation works with the line-level location enabled. For information about the Multiple Shipping Routes feature, see Multiple Shipping Routes.

Sales Transaction

• Subsidiary country: United States (New York)

• Subsidiary has nexuses in: New York, Texas, UK

• Subsidiary has locations in: New York, Texas, UK, Germany

Settings:

• Store Pickup: Disabled

• Line-level location: Enabled

• Multiple Shipping Routes (MSR): Disabled

• Item line shipping: Disabled

Item Line	Location (header)	Location (line level)	Ship to (header)	Ship to (line level)	Line-level nexus	Consistent	Transaction nexus	Notes
1	New York	UK	Texas	N/A	UK	-	UK	The transaction nexus is set to UK.
2	New York	N/A	Texas	N/A	Texas	No	UK	This is not allowed. The single nexus validation is triggered. You need to create a separate transaction.
3	New York	New York	Texas	N/A	Texas	No	UK	This is not allowed. The single nexus validation is triggered. You need to create a separate transaction.
4	New York	Germany	Texas	N/A	New York	No	UK	This is not allowed. The single nexus validation is triggered. You need to create a separate transaction.

Only the first item line determines the transaction nexus. All subsequent item lines must have the same nexus. If you add an item line with a different nexus, you'll need to remove it or create a new transaction to proceed.

Sales Transaction (All Lines Consistent)

Settings:

• Store Pickup: Disabled

• Line-level location: Enabled

• MSR: Disabled

• Item line shipping: Disabled

Item Line	Location (header)	Location (line level)	Ship to (header)	Ship to (line level)	Line-level nexus	Consistent	Transaction nexus	Notes
1	New York	Texas	Texas	N/A	Texas	-	Texas	The transaction nexus is set to Texas.
2	New York	New York	Texas	N/A	Texas	Yes	Texas	This is allowed.
3	New York	N/A	Texas	N/A	Texas	Yes	Texas	This is allowed.

In this scenario, all item lines have the same nexus. You can save the transaction successfully.

Purchase Transaction

Settings:

• Line-level location: Enabled

• Subsidiary has locations and nexuses in the United States, UK, and Germany.

Item Line	Location (header)	Location (line level)	Line-level nexus	Consistent	Transaction nexus	Notes
1	UK	Texas	Texas	-	Texas	The transaction nexus is set to Texas.
2	UK	UK	UK	No	Texas	This is not allowed. The single nexus validation is triggered. You need to create a separate transaction.
3	UK	New York	New York	No	Texas	This is not allowed. The single nexus validation is triggered. You need to create a separate transaction.

Related Topics:

• Understanding How the Nexus is Determined on Transactions in SuiteTax
• Nexus Determination Lookup Logic in SuiteTax
• Multiple Shipping Routes

General Notices