Sales tax on transactions
On every transaction (sales/purchase document lines, journals, and so on), you need to enter a sales tax group and an item sales tax group to calculate sales tax.
Default groups are specified in master data (for example, customer, vendor, item, and procurement category), but you can manually change the groups on a transaction, if necessary. Both groups contain a list of sales tax codes, and the intersection of the two lists of sales tax codes determines the list of applicable sales tax codes for the transaction.
On every transaction, you can look up the calculated sales tax by opening the Sales tax transaction page. You can look up the sales tax for a document line or for the whole document.
For certain documents (for example, vendor invoice and general journals), you can adjust the calculated sales tax if the original document shows deviant amounts.
Tax calculation dates
Numerous countries and regions experience regular adjustments in tax rates, and the system's tax rate can accurately represent these adjustments depending on the date of shipment. There are four date options to determine the appropriate tax rate:
- Delivery date
- Invoice date
- Document date
- Packing slip date
When users create a packaging slip for a sales order line, they will specify the packing slip date on the invoice, and the system can use this date to extract the tax rate from the tax code value table.
You can inherit tax information such as tax codes, rates, and amount from original transactions on reversal transactions. You can also recalculate tax based on the latest tax setup. You can also start a recalculation to update tax information on reversal transactions, which can improve reconciliation accuracy in some scenarios.
Inheriting origin tax information is supported by the following transactions:
- Sales order – Return order
- Sales order – Credit note
- Transfer order – Cancellation