Defining tax codes

Define tax codes to apply to materials and purchases. Tax codes represent the definition of tax coding structure that consists of a tax rate type, a tax rate code, a value for tax rate code, a tax code, and a value for the tax code.

Tax code records represent the combination of tax rate codes and tax code information that establish a structure that will apply all of the applicable taxes to materials and purchases based on transaction dates and the established tax structure created within a tax code. You can create any number of tax codes to fit any tax situation. You can also enter multiple rate codes for each tax code, as necessary.

Define tax codes by creating a tax code structure in the following order.