**Tax name

The name of the tax. You can enter up to 50 characters. For example, the tax name may be Federal sales tax or Gas tax.

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**Under authority of

The jurisdiction that enforces the tax: Federal Government, State/Provincial government, or Local Government.

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**Country

The country where this tax is applicable. Select the country from the list. You need to select a country when the tax falls under the jurisdiction of a federal government.

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State / province

The state or province that requires this tax. Select the appropriate state or province from the list. You need to select a state or province when the tax falls under the jurisdiction of a state or local government.

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Tax locality

The locality where this tax is applicable. Select the appropriate locality from the list. You need to select a locality when the tax falls under the jurisdiction of a local government.

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Default Tax Rate

The default rate for this tax. There may be more than one rate depending on the specific item that the tax applies to, but most items will be charged this rate.

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Materials and tools

Select this option if the tax applies to purchases of material and tool resources. The tax can then be prompted on new material or tool supplier resources.

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Repair orders

Select this option if the tax applies to repair orders. The tax can then be prompted on new repair supplier resources.

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Services and contractors

Select this option if the tax applies to purchases of service or contractor resources. The tax can then be prompted on new service or contractor supplier resources.

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Equipment rentals

Select this option if the tax applies to equipment rentals. The tax can then be prompted on new supplier resources for equipment rentals.

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Collection policy

Select which suppliers are eligible to collect this tax: • Collected only by suppliers in the same locality as the purchasing site • Collected only by suppliers in the same state or province as the purchasing site • Collected only by suppliers in the same country as the purchasing site • Collected by suppliers in any country Only the options that are applicable to the tax can be selected. For example, if the tax is created as a country tax, only the Same country, and Any country options are available.

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Prompting policy

Select if or when the system should prompt this tax when new supplier resources or extra charges are created: • Prompt if the supplier is in the same locality as the purchasing site • Prompt if the supplier is in the same state or province as the purchasing site • Prompt if the supplier is in the same country as the purchasing site • Prompt on all supplier resources and extra charges Note: The Prompt on all option is only available if the collection policy is Collected by suppliers in any country. • Never prompted: The tax must be added manually to any supplier resources or extra charges to which it applies. Only the options that are applicable to the tax can be selected. For example, if the tax is created as a country tax, only the Same country, Prompt on all, and Never prompted options are available. Note: A tax will only be prompted on a supplier resource price when the price’s site is in the same jurisdiction as the tax, regardless of the prompting setting. For example, Ontario taxes can only ever be prompted for sites that are in Ontario.

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Remittance Rule

Select whether this tax is self-assessed or remitted to the ordering supplier: • Always remitted to the ordering supplier: Select this option if the tax is always paid directly to the ordering or invoicing supplier. The tax is never self-remitted. • May be remitted to the ordering supplier, or is self-assessed: If you select this option, users can determine at the time of purchase if the tax will be remitted or not. You may use this option if some suppliers remit the tax, but others do not. You must also select a tax accrual account for this tax. • Always self-assessed: Select this option if the tax is always self-assessed, and it is never paid to the ordering supplier. You must also select a tax accrual account for this tax.

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Accrual Account

Select the accrual account for taxes that are not remitted to the ordering supplier (self-assessed). Tax amounts that are not remitted to the ordering supplier are accrued to this account.

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Sort sequence

The sort sequence for this tax. If more than one tax applies to a purchase, the sort sequence determines the order in which they appear on the purchase order.

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Invoice price tolerances

Select whether this tax uses the site’s price tolerance rules for invoicing or if specific price tolerances are required for this tax. To set up price tolerances specific to this tax, select the option Use the tax specific rules entered below and then enter the appropriate tolerances for price increases and/or decreases. If the tax invoice line is outside of the tolerances, the invoice line will require approval.

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Check Price Increases

Select this option if you want the system to check for increases between the entered price for an invoice line, and the supplier’s price for the line. You can then specify the allowable percent or amount of an increase before the line must be sent for approval. You can check for increases on regular, extra charge, and tax lines.

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Allowable Increase Percentage

Enter the percentage by which an invoice line can increase before the line must be sent for approval or changed so that it is within the entered tolerance. Lines that have a percent difference that is not below this entered percentage cannot be posted until they are approved or made acceptable. You can enter different amounts for regular, extra charge, and tax lines.

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Allowable Increase Amount

Enter the total amount by which an invoice line can increase before the line must be sent for approval or changed so that it is within the entered tolerance. Lines that have a difference that is not below this entered amount cannot be posted until they are approved or made acceptable. You can enter different amounts for regular, extra charge, and tax lines.

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Check Price Decreases

Select this option if you want the system to check for decreases between the entered price for an invoice line, and the supplier’s price for the line. You can then specify the allowable percent or amount of a decrease before the line must be sent for approval. You can check for decreases on regular, extra charge, and tax lines.

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Allowable Decrease Percentage

Enter the percentage by which an invoice line can decrease before the line must be sent for approval or changed so that it is within the entered tolerance. Lines that have a percent difference that is not below this entered percentage cannot be posted until they are approved or made acceptable. You can enter different amounts for regular, extra charge, and tax lines.

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Allowable Decrease Amount

Enter the total amount by which an invoice line can decrease before the line must be sent for approval or changed so that it is within the entered tolerance. Lines that have a difference that is not below this entered amount cannot be posted until they are approved or made acceptable. You can enter different amounts for regular, extra charge, and tax lines.

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Discountable amount

Select whether or not the value of this tax should be included in the amount that is eligible for a supplier’s discount. Example: A supplier issues an invoice for $850; the payment terms are 1% Net 10. The invoice consists of material costs of $800 and tax of $50. If the tax is not included in the discountable amount, the amount eligible for a discount is $800, and the discount is therefore $8. If the tax is set to be discountable, the amount eligible for a discount is $850, and the discount is therefore $8.50.

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