Tax Codes Settings

Use Tax Codes in Cash Management Settings to specify settings related to taxes and intercompany transactions.

Taxes can be applied to:

• Invoices entered in the Billing application
• Accounts payable vouchers, accounts payable disbursements, employee expenses, cash disbursements, cash receipts, invoices, and journal entries in the Transaction Center
• Expense reports in the Expense application
• Purchase orders entered in the Purchasing application

Taxes settings determine the following:

• How the tax is calculated
• Whether the tax is active or inactive
• Whether the tax can be used as an output tax, input tax, or both
• Limits for overriding tax code rates during transaction entry in the Transaction Center
• The non-recoverable tax percentage
• Which intercompany billing transactions the tax applies to, if you have multiple companies and perform intercompany billing