Manage Tax, Customer Order Freight Charge in Shipment
Explanation
Use this function to handle taxes in connection to customer order freight charges in shipment. You can enter tax
information directly on the customer order freight charge in shipment 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
Prerequisites
- Shipment header with at least one customer order freight charge line must exist on the Shipment
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 charge type, the tax code must be connected to the charge.
This is done on the Sales Charge Type page.
- 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 in the
Customer/Address/Delivery Tax Information/Taxes list.
- 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 in the
Customer/Address/Delivery Tax Information//Tax Free Tax Codes list.
- 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 in
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 Customer/Address/Delivery Tax Information.
System Effects
- Tax information is entered and connected to a specific charge 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
Customer Tax Code Validations, it is mandatory to enter a tax code or a tax calculation
structure on charge line.
- If the Use Price Incl Tax option is not enabled on the Shipment/CO Collect/Freight
Charges, net amount from charge line is used as tax base.
- If the Use Price Incl Tax option is enabled on the Shipment/CO Collect/Freight
Charges, gross amount from the charge 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 charge line.
- If the Use Price Incl Tax option is not enabled on the on the the Shipment/CO
Collect/Freight Charges, gross amount on charge line is calculated as a sum of net amount and tax
amount.
- If the Use Price Incl Tax option is enabled on the the Shipment/CO Collect/Freight
Charges, net amount on charge line is calculated as a difference between gross amount and tax
amount.
- If multiple taxes with different tax bases are calculated, gross amount on charge line is calculated as a sum
of net amount and tax amount.