FET and Sales Tax

mquinly

Hello-

I have a client that has a unique requirement i have not come across.
They have items that have a FET (federal excise tax) added to specific items. These items require this 12% tax ALWAYS. However, that specific customer might also be tax liable and depending on the area, have a 6% tax added.
So this single item sold to two customers, in the same area.. might have 18% tax or just the 12% tax if one is tax liable and the other is not.
I have run into a wall trying to figure out how to do this? I'm sure the answer is right in my face, but i can't see it.
Anyone able to help?

markborges

Not a tax expert, but my hunch is that you will need 2 Tax Areas: Both will include the FET Tax Jurisdiction.... And 1 will also include a local tax, and the other won't. Depending how many Tax Areas they have, this will pretty much duplicate those records....

Another possible way, maybe, is to have just 1 Tax Area with both Jurisdictions (FET and Local), and then have different Tax Group Codes for your items -- 1 that will include a Tax Rate for Local jurisdiction, and 1 that will not...

The caveat in this second option, is that you will need to change the Tax Group Code for the items on the Sales Order Level. The first option, you would have everything correctly setup on the Master Data and you wouldn't have to care about it on order entry.

Hopefully this makes sense.

markborges

Not a tax expert, but my hunch is that you will need 2 Tax Areas: Both will include the FET Tax Jurisdiction.... And 1 will also include a local tax, and the other won't. Depending how many Tax Areas they have, this will pretty much duplicate those records....

Another possible way, maybe, is to have just 1 Tax Area with both Jurisdictions (FET and Local), and then have different Tax Group Codes for your items -- 1 that will include a Tax Rate for Local jurisdiction, and 1 that will not...

The caveat in this second option, is that you will need to change the Tax Group Code for the items on the Sales Order Level. The first option, you would have everything correctly setup on the Master Data and you wouldn't have to care about it on order entry.

Hopefully this makes sense.