Configure a state-dependent tax code

You can configure a specific tax code for a specific ship-to state.

The following examples provide configuration settings for various scenarios.

  1. If the purchase order line tax code is I4, but should change to U1 if no tax is charged, unless the vendor is based in California where the code IU is used instead, then the Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Jurisdiction Codes tab are configured as follows:

    Setting

    Value

    Index

    2

    TaxCode

    I4

    Country

    US

    IfTax

    IfNoTax

    U1

    VendorState

    CA

    ShipToState

    IfTaxState

    IfNoTaxState

    IU

    PayTaxAsBilled

    True

    ShortPayIfTax

    False

    AccountAssignmentCategories

  2. If the purchase order line tax code is I4, but should change to UI if no tax is charged, except if the ship-to stat is Texas where the code IU is used instead, then the Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Jurisdiction Codes are configured as follows:

    Setting

    Value

    Index

    2

    TaxCode

    I4

    Country

    US

    IfTax

    IfNoTax

    U1

    VendorState

    ShipToState

    TX

    IfTaxState

    IfNoTaxState

    IU

    PayTaxAsBilled

    True

    ShortPayIfTax

    False

    AccountAssignmentCategories

  3. If the purchase order line tax code is I4, but should change to U1 if no tax is charged, except is the vendor and the ship-to are both in Virginia where the code IU is used, then the Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Jurisdiction Codes are configured as follows:

    Setting

    Value

    Index

    2

    TaxCode

    I4

    Country

    US

    IfTax

    IfNoTax

    U1

    VendorState

    VA

    ShipToState

    VA

    IfTaxState

    IfNoTaxState

    IU

    PayTaxAsBilled

    True

    ShortPayIfTax

    False

    AccountAssignmentCategories

You can configure state-dependent tax codes by following these steps:

  1. Using the menu, navigate to Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Jurisdiction Codes tab.
  2. Using the above examples as a guidelines, enter the values that are relevant for your needs.
  3. Save your changes.
  4. Navigate to the Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Settings tabs.
  5. Select the Read Plant From DB setting and point it to a populated data source in the table.

    Several plant database settings are displayed.

  6. Map the following plant database settings:
    • Plant Database Connection Name

    • DB Plant Table

    • DB Plant

    • DB Plant Country

    • DB Plant State

    • DB Plant Tax Jur Code

  7. Save your changes.

    If both Vendor State and Ship To State are populated, then only that combination triggers the use of the If Tax State or the If No Tax State codes.