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Navigation: Purchasing (Main Module) > Setup System Tax Settings |
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PURCHASING > Setup system > Tax settings
These settings determine how taxes will default on POs and other document, as well as other tax-related settings.
If you are using the Invoice Approval Module and performing an A/P Interface, you can break out taxes for invoice transactions and charge the taxes to a specific set of account codes. See A/P Interface Settings for details. |
Tax Settings Screen
Field |
Description |
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Tax Numbers |
•These fields are used to indicate your organization’s tax numbers, as assigned to you by the applicable government tax agencies, for use if your PO layout includes a space for tax numbers (e.g. Federal or State/Provincial Tax Numbers). |
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LOCAL/default tax codes |
•These tax codes will default on POs and other documents/transactions if no other tax defaults apply to the transaction. For a list of other areas that taxes can optionally default from, see Tax and Rate Exchange Master File. •These tax codes are also used to determine if cost center charges should be adjusted when items are given to a cost center (e.g. when inventory usages are made). SpendMap will compare these local/default tax codes to the tax codes for the cost center to determine if taxes should be recalculated. If the tax codes for the cost center are blank or the same as these default tax rates, no conversion will take place. However, if the tax rates are different, the taxes for the charge will be recalculated based on the tax codes entered for the cost center. •Finally, the local/default tax codes are used when SpendMap calculates an item's standard cost (these default tax codes will be used if no tax codes have been entered for the applicable item in the Master File). |
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Rounding precision for tax amounts |
•Enter the rounding precision (from 2 decimal places to 4 decimal places) for all system-calculated tax amounts. |
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Default taxes based on |
•When taxes default on POs and other documents based on the applicable cost center, they can default based on either the ship-to or charge-to cost center on the document. •This setting affects tax defaulting on all documents/transactions other than for inventory usages and item Standard Cost calculations, which will use the charge-to cost center, since ship-to is not available in these areas. |
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Charge Tax on Freight? |
•These settings determine whether tax will be included on system-generated freight line items. •Freight line items will be added to POs automatically if so indicated in the Item Master File. Also, freight charges can be added during invoice approval.
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