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Since tax rules can vary between jurisdictions, it is sometimes necessary to calculate taxes based on a tax zone other than the one used for the actual purchaser of the goods or services provided. The Tax Area priority option, shown in figure 1, allows for establishing the order in which the system will search for a tax zone to set the appropriate Invoice Tax Area. When the Tax Zone for a higher priority is blank, the system will simply use the next priority in sequence.
Figure 1: Tax area priority setup
For systems not using departments, System Five will use the Customer's Tax Area by default when no priority is selected.
Setting tax areas by Departments, as show in Figure 2, is only available when the system is set up for using Departments.
Figure 2: Tax area priority setup for a system using departments
Departments can be set individually by selecting the appropriate department tab in which to make the changes. All departments can be set to the same setting by using the All Departments tab.
The default priority prior to selecting priority options is established by the Department tax area overrides customer tax area option.
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