GST Tax by Item/Customer

[limkb]

Dear List,

Is there any way to set up the tax area using item group and customer group combination? The system currently only default tax area by customer.

Preferably to do this using the tax file instead of advance pricing.

Thanks in advance

 

[Craig_Potter]

Good Evening / Selamat Malam,

It is not that obvious, but the Tax Rate/Areas file (F4008) does support Tax rates by Item Group. The file is actually keyed by Tax Rate/Area AND Item Number - but not necessarily Item Number as we normally understand it.

When Item Number = 0 in F4008, this relates to all Items with Sales/Purchasing Tax Code = Y on Item Branch.

When Item Number = 3,4,5,6,7 or 8 in F4008, this relates to all Items with Sales/Purchasing Tax Code = 3,4,5,6,7 or 8 on Item Branch (behaves like a Tax Group for multiple Items - but limited to these six hard coded group codes 3,4,5...8).

When Item Number = anything else in F4008 you have Item specific Tax Rates for a Tax Rate/Area.

P4008 has a processing option to control the entry of Item Number.

There are documents on the KG that also attempt to explain this (try Doc ID 1413283.1 - scan for Short)

Hope this helps.

 

[limkb]

Hi Craig,

Thank you for your reply. I have tried the solution you mention but it will only change the rate amount. The tax area remain the same.

For example, if I have a multi supplies scenario where 1 item is rated at 4% with tax area (SR) and another item is zero rate (tax area EX).

The customer have a default tax area of SR. When I enter the sales order, it does not seems to populate the EX as tax area even if I set the EX + 3 as item number and assign the value of 3 to the item master tax field. System will instead populate the detail line with tax = 3, tax area = SR.

Am I missing something?

Thanks in advance

 

[Craig_Potter]

Hi, it sounds like you are close.

The Tax Rate Amount IS what you change when you have mixed Tax scenarios like this.

The Tax Rate Area (TXA1) for Sales comes from the Ship To - the Item has no control over the Tax Rate Area.
Note: In 9.1 you can also specify an Alternate Tax Rate/Area rule by Ship To and Ship From Country - but this is still not a different Tax Area per Item (see http://docs.oracle.com/cd/E16582_01/doc.91/e15153.pdf)

If the Customer is not Tax Exempt (Tax Explanation = E)and the Item/Branch is not set with Taxable=N, then JDE will apply a Tax Rate from the F4008. To determine which record it will pick it uses a combination of the Customers Tax Area and the Item's Taxable flag.

So, in your example below create a record in P4008 for Area=SR and Item=3 at 0%.

Hope this helps

 

[limkb]

Hi Craig,

Thank you for the explanation. Guess I will have to make do with it for now.