All systems I have worked with have a default Tax code (e.g. VAT) within the customer/supplier maintenance table. While invoicing/Goods receiving, the system should give priority on the default Tax code of the customer/supplier in order to do the tax calculations for each document. For example if a customer is with a VAT RATE (Zero) and the items to be sold with VAT RATE 19% while in invoicing the system should not calculate any Vat Amount.
how do you expect Manager to know which tax code to apply when you have defined tax codes for both the customer and the item sold?
also in countries like India, the tax rate and tax code is dependent on both the type of goods and the place of sale.
there is provision in Manager to set default tax rates for inventory items. so if an inventory is specific to a customer, you can set the tax code in the inventory item.
Hi, thanks for your response. Just to clarify what I did suggest in regards to Vat. When you setup a customer in the maintenance table to select the appropriate vat code (e.g. Vat Rate 2 which 0% vat rate and it applies for export). While in invoicing whatever item you select with different rates (e.g. 10%,15%) will be ignored giving priority on the customers default vat status. If the customer is local then the vat rates of the items will be apply accordingly. I hope this will clarify your worries !
Generally here, most of the sales tax I need to bill to customers are based mostly on where I am shipping, so really from the Customer address. I too would like to see the ability to add a tax code to a customer to default to sales orders and invoices.
It may be this would need some default setting options also to specify the precedence of tax defaulting, e.g. Customer 1st, Item 2nd or Vice versa depending on the needs of the particular business. Thoughts?