Manage Tax, Purchase Order Line

Explanation

Use this function to handle taxes in connection to purchase order line and purchase order change order line. You can enter tax information directly on the purchase order line and purchase order change order line or work with multiple taxes. If you select tax structure you can work with mutiple taxes with different tax base amounts. If you work with multiple taxes without selecting tax structure you can add, modify or remove tax lines. Default tax information can also be retrieved.

Taxes entered on purchase orders are considered estimated until invoiced and paid.

Prerequisites

• Purchase order or purchase order change header with at least one order line must exist in the Purchase Order page or Purchase Order Change Order page.
• The Taxable option in the purchase order or purchase order change order line must be enabled.
• The tax codes to be applied must have been defined for the company used. This is done in the Tax Codes page.
• To calculate single tax or multiple taxes with the common tax base amount
  • Purchase part must be taxable. This is done in the Purchase Part page. For no part order lines this is done on the Company/Tax Control/Supply Chain tab under Procurement.
  • To receive default tax values for the purchase part, the tax code must be connected to the part. This is done in the Supplier for Purchase Part page. To receive default tax values for no part order line when the tax liability is of tax liability type Taxable, the tax code must be specifed for supplier or company. This is done on the Supplier/Invoice/Tax Information tab and the Company/Tax Control/Supply Chain tab. To receive default tax values for no part order line when the tax liability is of tax liability type Exempt, the tax free tax code must be specifed for supplier or company. This is done on the Supplier/Invoice/Tax Information tab and the Company/Tax Control/Supply Chain tab.
• To receive default tax values for the taxable scenario from the supplier address, the tax liability must be of tax liability type Taxable, the Use Supplier Address for Tax option must be enabled and one or more tax codes must be connected to the supplier's delivery address on the Supplier/Address/Delivery Tax Information tab.
• To receive default tax values for the taxable scenario from the company address, the tax liability must be of tax liability type Taxable, the Use Supplier Address for Tax option must not be enabled on the Supplier/Address/Delivery Tax Information tab and one or more tax codes must be connected to the company's delivery address on the Company/Address/Tax Information tab. Purchase order or purchase order change order line should not be connected to project activity.
• To receive default tax values for the taxable scenario from the project address,the tax liability must be of tax liability type Taxable, the Use Supplier Address for Tax option must not be enabled on the Supplier/Address/Delivery Tax Information tab and one or more tax codes must be connected to the project delivery address on the Project Definition/Addresses tab. Purchase order or purchase order change order line should be connected to project activity.
• To calculate multiple taxes with different tax base amounts
  • Purchase part must be taxable. This is done in the Purchase Part page. For no part order lines this is done on the Company/Tax Control/Supply Chain tab in section Procurement.
  • The tax calculation structure to be applied must have been defined for the company used. This is done in the Tax Calculation Structure page.
• To receive default tax values for the taxable scenario from the supplier address, the tax liability must be of tax liability type Taxable, the Use Supplier Address for Tax option must be enabled and tax structure must be connected to the supplier's delivery address on the Supplier/Address/Delivery Tax Information tab.
• To receive default tax values for the taxable scenario from the company address, the tax liability must be of tax liability type Taxable, the Use Supplier Address for Tax option must not be enabled on the Supplier/Address/Delivery Tax Information tab and tax structure must be connected to the company's delivery address on the Company/Address/Tax Information tab. Purchase order or purchase order change order line should not be connected to project activity.
• To receive default tax values for the taxable scenario from the project address,the tax liability must be of tax liability type Taxable, the Use Supplier Address for Tax option must not be enabled on the Supplier/Address/Delivery Tax Information tab and tax structure must be connected to the project delivery address on the Project Definition/Addresses tab. Purchase order or purchase order change order line must be connected to project activity.

System Effects

• Tax information is entered and connected to a specific purchase order or purchase order change order line. If single tax is calculated, the Multiple Tax Lines option is not enabled and single tax code is displayed in the Tax Code column on the line. If multiple taxes are calculated, the Multiple Tax Lines option is enabled on the line. If multiple taxes with different tax bases are calculated, the tax calculation structure is displayed in the Tax Calculation Structure column on the line.
• If the Transaction Level option is enabled on the Company/Tax Control/General tab under Supplier Tax under Tax Code Validations, it is mandatory to enter a tax code or a tax calculation structure on the purchase order or purchase order change order line.
• If the Use Price Incl Tax option is not enabled on the Purchase Order/Order Details tab, net amount from purchase order or purchase order change order line is used  as tax base.
• If the Use Price Incl Tax option is enabled on the Purchase Order/Order Details tab, gross amount from purchase order or purchase order change order line is used as tax base.
• If multiple taxes with different tax bases are calculated, the tax base for each tax line is derived from the tax calculation structure definition and it is displayed in the Tax Base Amount/Curr column.
• Total tax amount, deductible tax amount and non deductible tax amount are calculated for each tax line.
• Total tax amount, deductible tax amount and non deductible tax amount are calculated for purchase order or purchase order change order line.
• If the Use Price Incl Tax option is not enabled on the Purchase Order/Order Details tab, gross amount on purchase order or purchase order change order line is calculated as a sum of net amount and tax amount.
• If the Use Price Incl Tax option is enabled on the Purchase Order/Order Details tab, net amount on purchase order or purchase order change order line is calculated as a difference between gross amount and tax amount.
• If multiple taxes with different tax bases are calculated, gross amount on purchase order or purchase order change order line is calculated as a sum of net amount and tax amount.

Pages

Purchase Order
Purchase Order Change Order

Activity Diagrams

Enter Purchase Order