Specify a Tax for a Service, Freight or Finance Contract

For more information, see Taxes.

Security Note: You need the Allow contract maintenance security right in the Contracts domain security rights group for this activity.

Activity Steps

1. Open the Service Contract, Freight Contract or Finance Service Contract.
2. Select the Contract Taxes tab.
3. Right-click and select New » [Invoice Type] » [Tax Category] » [Tax] from the menu.

   The recommended [Invoice Type] is All.

4. Update the following fields as required.
   • Name
   • Reference Date—The date used to determine the applicable tax rate from the Tax Rates table on the Tax Editor. Select from:
   • Bill of Lading Date (default)—The bill of lading date, or else the first available date out of ATD at origin, ETD at origin or planned despatch date. (Snapshots, revaluations and non-final invoices use the bill of lading date, or else the first available date out of: ATD at origin, ETD at origin, ATA at origin, ETA at origin, the quota end date, or planned despatch date.)
   • Invoice Date
   • Destination Arrival Date—The ATA at destination. (Snapshots and revaluations and non-final invoices use the first available date out of: ATA at destination, ETA at destination, estimated arrival based on the travel and duration time of a route that matches the planned loading and unloading locations or quota contractual source and destination, bill of lading date of the despatch order, or planned despatch date of the despatch order.)
   • Currency—Select from the currencies defined in the Currency/Exchange Editor. Default: The currency specified for the tax in the Tax Editor.
   • Start Invoice—Optionally limit the invoice iteration from which the tax is applied.
   • End Invoice—Optionally limit the invoice iteration up to which the tax is applied.
   • Tax Rate Override—Optionally override the rate specified for the tax in the Tax Editor.
   • Allow Credit Notes—Whether negative tax amounts are calculated for credit notes that are created because the current freight or service invoice value is less than the value of the previous invoice. If checked, tax is calculated for and included in all applicable invoices, including credit notes. If unchecked, the applicable tax for the credit note is zero. The total tax amount is the same as the previous invoice. Not applicable if Price Inclusive is checked for the tax in the Tax Editor. Default: Checked.
   • Applicable Invoices—Types of invoice to which the tax is applied. Select from:
   • Standard Invoices Only
   • Accruals Only
   • All
   • As Per Tax Configuration (default)
   • Applicable Origins—Origin countries and provinces/states in which this tax is applied. Select from the applicable countries and provinces/states for the tax, as specified in the Tax Editor. The origin is for a:
     • Sales despatch order—The province/state in the address of the loading location or else the address of the buyer organisation or company.
     • Purchase despatch order—The province/state in the address of the organisation or company in the Receive From field on the Despatch Order or else the address of the seller organisation or company.

     Note: For child despatch orders (CDOs) that are invoiced by aggregated parent despatch order (APDO), the origin is as specified on the APDO. If invoicing is by CDO, the origin is as specified on the CDO; however, if not specified on the CDO, the origin specified on the APDO is used instead. See Aggregated Parent Despatch Orders.

   • Applicable Destinations—Destination countries and provinces/states in which this tax is applied. The destination is for a:
     • Sales despatch order—The province/state in the address of the organisation or company in the Ship To field on the Despatch Order or else the address of the buyer organisation or company.
     • Purchase despatch order—The province/state in the address of the unloading location or else the address of the seller organisation or company.
   • Active

   Note: The Unit, Basis and Tax Determination cannot be changed from the settings specified in the Tax Editor.

5. To override rates from the applicable exchange rate source, see Enter Fixed Exchange Rates.
6. Click Save.