Tax Systems
Use this form to establish the tax system and tax codes used in processing Value Added Tax (VAT) or sales tax related information. The VAT function is used in some countries when processing items for customer orders, purchasing, accounts receivable, and accounts payable.
For example, in the United States, the Tax Code label is defined as Tax Code. In the United Kingdom, however, the Tax Code label is defined as VAT Code.
For example, if the Active For Purchasing field is set to Yes after purchase orders have already been entered into the system, the current POs will not contain the proper tax codes, and tax records on the PO side will not exist.