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 usedÂ
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.