In IFSAPP 10, if tax controls of the company has been ticked for Object Level, Address Level and Transaction Level and if a tax code has been given in the customer window Delivery Tax Information ; the customer will be charged with both taxes when creating customer orders. Is this a bug as this amount will be carried forward to the invoice as well?
It seems that this was not the case in IFSAPP 09 as we used to have the Tax Regime Concept.
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In APP10, there was a redesign in the Tax System and implemented the Tax Engine. In this version, we have no longer maintain the Tax Regime. The Tax Regime concept is removed. If the Tax Code is defined in Sales Part, then that Tax code is fetched when you create a Customer Order. If you define tax code in Delivery address, then that tax code will also be fetched to the Customer Order.
Therefore, based on the country's Tax system, you must correctly set up the Tax Codes. If your country has a VAT Tax system, then the tax will be based on the sales part and tax code should be defined in the sales part. If the country’s Tax System is Sales Tax, then tax code needs to be defined in the Delivery Address. If you define both then both taxes will be applied.
Therefore, based on the country's Tax system, you must correctly set up the Tax Codes. If your country has a VAT Tax system, then the tax will be based on the sales part and tax code should be defined in the sales part. If the country’s Tax System is Sales Tax, then tax code needs to be defined in the Delivery Address. If you define both then both taxes will be applied.
Equally you can ignore both approaches and set VAT code on customer if only one VAT destination and therefore not worry about the sale part. Some sales parts may be sold in multiple countries and therefore to avoid duplication of parts per country by specifying the tax code on the sales part, just set it to the customer and validate tax at transaction level. Since there will be no tax code on the transaction level, IFS will always look further up the hierarchy for the tax code and find it at customer.
All tax codes that you include on the delivery tax information are considered as default values for that customer when creating the transaction. This remains what in previous versions we use to set up the tax regime as sales tax and the system would go and look for what was defined in that tab. The 2 taxes you are referring to should not be included in all orders for that same customer or is just random calculations that need to happen, sometimes 1 tax and some other 2 or more?
Hi, In cases like “ Some sales parts may be sold in multiple countries and therefore to avoid duplication of parts per country by specifying the tax code on the sales part, just set it to the customer and validate tax at transaction level. ” Is the right setting in Tax Control to select ONLY Transaction level? Using IFS10 Aurena.
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