Define tax codes to specify a code under which to group tax rates together to simplify taxing materials.
Tax code records represent the combination of each of the applicable tax rates and their values. To define a tax code, specify a code and description for the tax code, and then associate all of the tax rates that are applicable for the tax code. You can create tax codes to fit any tax situation as necessary, and you can associate multiple tax rates for each tax code.
To define tax codes:
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Select Materials > Setup > Tax Codes.
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Click New Record.
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Specify this information:
Organization - Specify the organization to which the tax code belongs if you use multi-organization security.
Tax Code - Specify a unique code identifying the tax, and then specify a description of the tax code in the adjacent field.
Class - Specify the class of the tax code. The classes shown belong to the TAX entity.
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Click Save Record.