Document Fiscal Classifications
Use the document fiscal classification when the tax determination and reporting processes need the documentation associated with the transaction. Document classifications are associated with the transaction header and therefore, apply to all the transaction lines on a transaction.
Document fiscal classifications provide a hierarchy of up to five levels. When defining the document fiscal classification codes, use the Country field to specify the taxation countries where the document fiscal classification is used.
During transaction time, the taxation country restricts the list of document fiscal classification on the transaction line to those that are set up with the same country or where the country is blank. When setting up the document fiscal classification, leave the Country field blank or use the same country that's defined on any parent level of the record that you're adding.
While setting up the document fiscal classification, use different levels so that all the necessary rules are defined at the highest level possible. This helps minimize the needed number of tax rules.
Document Fiscal Classifications in Tax Rules
The document fiscal classification tax determination factors allow you to use the document fiscal classification in tax rules. A combination of the determination factor class, class qualifier, and determining factor represents these determination factors.
Use document as the determining factor class, the level of the transaction business category being used, level 1, level 2, level 3, level 4, or level 5 as the class qualifier, and the document fiscal classification as the determining factor.
The value you enter against the condition set is the document fiscal classification code or name set up for the specific level defined in the class qualifier, as well as for the same country or where the country is blank on the document fiscal classification.
Document Fiscal Classifications at Transaction Time
During transaction time, enter the document fiscal classification on the transaction to classify the transaction for tax determining and reporting purposes.
The document fiscal classification is stored in the tax reporting ledger and is available for reporting.