Content was last updated in 06.22.01-00
Applicable to Rental Orders, Sale Orders, Work Orders, Purchase Orders, and Meeting Orders.
Tax charges are applied to Orders based on the Tax Schedule, Customer Tax Group, Item Tax Group and ' Action' combination available for the Tax Region applied to the Order.
Consider Tax definitions as below
Definition No |
Tax Area |
Tax Region |
Customer Group |
Item Group |
Action |
1 |
A1 |
REG1 |
|
IT1 |
Rent |
2 |
A1 |
REG1 |
CG1 |
|
Rent |
3 |
A1 |
REG1 |
CG1 |
IT1 |
Rent |
4 |
A1 |
REG1 |
|
|
Sell |
5 |
A1 |
REG1 |
|
|
Default |
6 |
A1 |
REG1 |
CG1 |
IT2 |
Rent |
7 |
B1 |
REG2 |
CG1 |
|
Default |
8 |
B1 |
REG2 |
|
IT1 |
Rent |
9 |
A1 |
REG1 |
|
|
Misc |
10 |
A1 |
REG1 |
|
|
Labor |
11 |
A1 |
REG1 |
|
DW1 |
Misc |
12 |
A1 |
REG1 |
|
SC1 |
Misc |
13 |
A1 |
REG1 |
|
CS1 |
Misc |
The Order is created in Site-A, belonging to Region REG1.
R2 gives priority in the following sequence before applying any tax definition.
Tax region defined in the Order
Customer Tax Group
Item Tax Group
Site Tax Region
Action of the items in the Order
In an Order, by default the Tax Region tagged for the Order site will be displayed as the default Tax Region in the Shipping tab, which can be changed by the user.
R2 will implement the Tax definition based on the following scenarios :
Scenario |
Order Tax Region |
Customer Tax Group |
Item Tax Group |
Site Tax Region |
Charges on the Order |
Definition
Considered |
1 |
REG1 |
CG1 |
IT1 |
REG1 |
Rent |
Definition No 3 |
2 |
REG1 |
CG1 |
IT1 |
REG1 |
Rent, Sell |
Definitions 3, 4 |
3 |
REG1 |
CG1 |
IT1 |
REG1 |
Rent |
Consider if definition 3 is not defined, then R2 will give priority to the Customer Tax Group, that is to 'CG1'. Hence definition 2 will be applied. If definition 3 and 2 are not defined then R2 will search by Customer Tax Group, if a match is not found then R2 will search by item Tax Group. Hence definition 1 will be applied. |
4 |
REG1 |
CG2 |
IG2 |
REG1 |
Rent |
As appropriate match is not found in the definition table, definition 4 will be applied. |
5 |
REG2 |
CG1 |
IT1 |
REG1 |
Rent |
Definition 9 will be applied on the Order, as Tax Region selected for the Order will be considered first and the following based on the priority sequence. |
6 |
REG1 |
CG1 |
IT1 |
REG1 |
Rent, Misc |
Definition 3 ( for Action - Rent ) and Definition 9 ( for Action - Misc) will be applied.
|
7 |
REG1 |
CG1 |
IT, IT2 |
REG1 |
Rent |
As the items present in the Order belong to different Tax Groups (IT1,IT2) , the definitions 3, 8 will be applied to the Order . |
8 |
REG1 |
|
|
REG1 |
Labor |
Definition No : 10 will be applied |
Note : On tagging a Misc Charge definition in Configuration > Accounting Tab > Inventory Settings for Service Charge , Damage Waiver and Consumables, and if tax definition is present for action 'Misc', then Tax will be applied for Service Charge , Damage Waiver and Consumables based on the tax defined. more.. |
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9 |
REG1 |
|
DW1 |
REG1 |
Damage Waiver |
Definition No : 11 will be applied for Damage Waiver. |
10 |
REG1 |
|
SC1 |
REG1 |
Service Charge |
Definition No : 12 will be applied for Service Charge. |
11 |
REG1 |
|
CS1 |
REG1 |
Consumables |
Definition No : 13 will be applied for Consumables. |
See also: Tax Calculation for Service Charge, Damage Waiver, and Consumables