Taxability Defaults by State/Province

Overview:

Use the Taxability Defaults by State/Province window to establish taxability defaults for billings and purchases by any combination of state/province, call type, and/or service type.

System Option 344 (WO/MC Taxability Determination) controls how PENTA uses taxability defaults for Work Orders and Maintenance Contracts through a hierarchy of levels (eg customer level, invoice level).

If Option 344 is set to 1 (default), PENTA determines that the Work Order/Maintenance Contract is non-taxable if any level in the hierarchy is specified as non-taxable.

If Option 344 is set to 2, PENTA determines taxability of the Work Order/Maintenance Contract based on the highest level in the hierarchy for which taxability is specified. When Option 344 is set to 2, levels in the hierarchy might not have taxability specified.

The WO/MC Taxability hierarchy is:

1. Work Order Template window (Tax tab)
2. Customer Location (Customers window, Locations tab, Service Management sub-tab)
3. Customer (Customers window, Service Management tab)
4. Customer Invoice Location (Customers window, Loc Invoice Cus… button)
5. Customer Invoice (Customers window, Cus Invoice Cus… button)
6. Taxability Defaults By State/Province window
7. Organizational Units window (Setup tab, Service Mgmt button, Service Management Parameters pop-up)

Benefits:

• Ensures accurate tracking of taxability for Purchasing and AR Billings
• Enables use of PENTA's sales tax module.

Roles:

• Accounting Manager
• CFO
• Controller

Location:

• Financial & Accounting > Setup >Taxability Defaults by State/Province

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