Edit Tax on Order Lines

Modify tax details and apply them on an order line.

1. Go to the Order Management work area.

   On the Overview page, click Create Order.

2. On the Create Order page, choose a value in the Customer attribute, such as Computer Service and Rentals.

   You must set the Customer. It affects pricing.

3. On the Order Lines tab, add an item.

4. Click the orange down arrow on the order line, then click Edit Tax Determinants.

5. Edit values, as necessary.

Note

• Your sales order doesn't calculate tax when you add an item to an order line or override a price. Instead, it calculates tax only after you do one of these actions.

  • Actions > Reprice Order.

  • Save.

  • Submit.

  • Modify the shipping method.

• Some actions might result in a change to the tax details that you can view. Assume the sales order lists a new warehouse, and the warehouse uses tax details that are different from the tax details that the previous warehouse used. Your order administrator might constrain the changes you can make that affect tax values.

Edit Tax Determinants

Attribute	Description
Taxation Country	Select the country that will collect tax for this sales order. This is typically the country where your customer receives the item.
First-Party Tax Registration Number	Defaults to the tax registration number that your order administrator sets up for the legal reporting unit. This unit is associated with the customer that you select in the Customer attribute. Tax registration includes details about the tax obligation that your customer incurs from the tax authority that resides in the tax jurisdiction where your customer receives the item. Registering the details of a business with the tax authorities is an important legal requirement in many countries. You can assign a unique tax registration number to the organization that registers with the tax authority. The tax authority use it to reference and track tax implications for the organization. A tax document, such as an invoice or tax return, typically references a registration number that identifies the organization involved in the transaction.
Transaction Business Category	Choose the business classification that Order Management must use to identify and categorize a transaction into a tax transaction.
User-Defined Fiscal Classification	Specify other classifications that determine how to report tax for a transaction.
Document Fiscal Classification	Specify the classification that your tax authority uses to categorize a document that's associated with a transaction for a tax.
Assessable Value	Enter a value that your taxing authority will use to tax the item.

To get details, go to Implementing Tax, then search for the attribute on the Implementing Tax page. For example, search for Transaction Business Category, then examine the search results.

Edit Exemption Determinants

Attribute	Description
Tax Exemption Tax Exemption Certificate Number	Specify a full or partial exclusion from taxes.
Product Category	Classify a noninventory product category that your organization uses to determine tax or to report tax.
Product Fiscal Classification	Classify the item so a tax authority can categorize the item for a tax.

To get details, go to Implementing Tax, then search for the attribute on the Implementing Tax page. For example, search for Product Fiscal Classification, then examine the search results.

Update Defaults for Tax Classification Codes

If you add an item to an order line but don't select the warehouse on that line, then Order Management will apply the default Tax Classification Code that you have set up for the item in the Item Validation Organization order management parameter. If you save the order and then select the warehouse at some future time, then Order Management will continue to use the default value for the old warehouse even if you save or reprice the order.

Order Management applies this behavior when any of these attributes contain a value:

• Product Type
• Product Fiscal Classification
• Intended Use Classification
• Product Category

To update the default value, click Reset All in the Edit Tax Determinants dialog. Order Management will apply the Tax Classification Code for the current warehouse on the line.

For background, see Use Item Validation Organizations with Order Management.