This activity is used to enter or update information about external tax use code which are used to categorize customers into tax categories. These are used in Avalara/Vertex software to setup specific tax rules (Eg: Entity Use Codes in Avalara). Frequently, it is used to mark a customer as exempt even though the customer is normally taxable.
There are no prerequisites.
As a result of this activity, the entity use code can be linked to Customer basic data in the General tab. This value is then inherited to the customer order/instant invoice and Avalara/Vertex software can then use the External Tax Use Code to setup specific tax rules.