Manage Tax for Customer Order Line or RMA Line
Explanation
Use this function to handle taxes in connection to customer order line and
return material authorization line. You can enter tax information directly on
the customer order line and return material authorization line or work with
multiple taxes. If you select tax structure you can work with multiple 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.
If you are using Tax Calculation software, please take a look
here.
Prerequisites
- If the tax is to be applied to customer order line, customer order header
with at least one order line must exist in the Customer
Order page.
- If the tax is to be applied to return material authorization line, return
material authorization header with at least one return material line must
have been entered in the Return Material Authorization
page.
- The tax codes to be applied must have been defined for the company used.
This is done on the Tax Codes page
- To calculate single tax or multiple taxes with the common tax base amount
- To receive default tax values from the sales part or non-inventory
sales part, the tax code must be connected to the part. This is done
on the Sales Part page and the
Non-Inventory Sales Part page, respectively.
- To receive default tax values from the taxable customer address,
the tax liability must be of tax liability type Taxable and one
or more tax codes must be connected to the customer's delivery address
on the Customer/Address/Delivery Tax Information
tab.
- To receive default tax values from the exempt customer address,
the tax liability must be of tax liability type Exempt and one
or more tax codes must be connected to the customer's delivery address
on the Customer/Address/Delivery Tax Information
tab.
- To calculate multiple taxes with different tax base amounts
- The tax calculation structure to be applied must have been defined
for the company used. This is done on the Tax
Calculation Structure page.
- To receive default tax values from the taxable customer address,
the tax liability must be of tax liability type Taxable and the
tax calculation structure must be connected to the customer's delivery
address on the Customer/Address/Delivery Tax
Information tab.
System Effects
- Tax information is entered and connected to a specific order line. If
single tax is calculated, the Multiple Tax Lines option is disabled
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
Customer Tax Code Validations, it is mandatory to enter
a tax code or a tax calculation structure on order line.
- If the Use Price Incl Tax option disabled on the
Customer Order/Order Details tab or the
Return Material Authorization/Order Details
tab, net amount from order line is used as tax base.
- If the Use Price Incl Tax option is enabled on the
Customer Order/Order Details tab
or the Return Material Authorization/Order
Details tab, gross amount from the 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.
- Tax amount is calculated for each tax line.
- Tax amount is calculated for order line.
- If the Use Price Incl Tax option disabled on the
Customer Order/Order Details tab or the
Return Material Authorization/Order Details
tab, gross amount on order line is calculated as a sum of net amount and
tax amount.
- If the Use Price Incl Tax option is enabled on the
Customer Order/Order Details tab
or the Return Material Authorization/Order
Details tab, net amount on 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 order line is calculated as a sum of net amount and tax amount.
- For customer order, if single occurrence address is used and the tax
liability is of tax liability type Taxable, taxes are retrieved
according to the customer's delivery address selected prior to selecting
single occurrence address.
- For customer order, if single occurrence address is used and the tax
liability is of tax liability type Exempt, the tax free tax code
is retrieved from the Customer Order/Delivery Address
section.
If you are using Vertex software to automatically calculate taxes on sales
quotations, customer orders, customer order invoices and return material authorizations
the overall concept of the integration is; when a tax call is initiated in IFS
Cloud a call is made to the Vertex Sales Tax software to fetch the correct tax
rates based on the information on the sales quotation, customer order, customer
order invoice or the return material authorization. Three main parameters are
used to identify the correct tax rates. These parameters are:
- Ship From Address (the delivery address associated with the site where
the customer order is placed)
- Ship To Address (the address associated with the customer order line)
- Order Acceptance Address (the default document address associated with
the company where the customer order is placed)
In addition to these main parameters, information such as sales part number,
price, quantity and customer group are also passed to the Vertex Sales Tax software
to ensure the correct tax rates are fetched. Based on the information sent to
Vertex, Vertex looks up the correct tax rates and tax amounts and return the
information to IFS Cloud. The information is then uploaded into the tax lines
dialog. The tax lines dialog is read only when using Vertex, meaning that it
is not possible to manually add tax codes.
If you are using Avalara Tax software to automatically calculate taxes on
sales quotations, customer orders, customer order invoices and return material
authorizations the overall concept of the integration is; when a tax call is
initiated in IFS Cloud a call is made to the Avalara Tax software to fetch the
correct tax rates based on the information on the sales quotation, customer
order, customer order invoice or the return material authorization. Four main
parameters are used to identify the correct tax rates. These parameters are:
- Ship From Address (the delivery address associated with the site where
the customer order is placed)
- Ship To Address (the address associated with the customer order line)
Customer Tax Usage Type (this is to categorize the customer. Ex: a charity
organization, government organization...etc.)
- Avalara Tax Code (this is to categorize the part. Ex: food, pharmaceutical...etc.)
In addition to these main parameters, information such as sales part number,
price and quantity are also passed to the Avalara Tax software to ensure the
correct tax rates are fetched. Based on the information sent to Avalara, Avalara
looks up the correct tax rates and tax amounts and return the information to
IFS Cloud. The information is then uploaded into the tax lines dialog. The tax
lines dialog is read only when using Avalara, meaning that it is not possible
to manually add tax codes.