Hello Gurus,
I would greatly appreciate your thoughts on the following issue. Points available as always. THIS IS A 2-PART QUESTION.
My client is not charged a tax when it purchases items since it is considered a wholesaler. My understanding is that wholesalers are "tax exempt". I am trying to configure AP tax in FTXP. I am using TAXUS. Country Key is US and I would like to use Tax Code<b> I0</b> (A/P sales tax, 0%).
When I do a MIRO, I get the following issue:
<b>Tax code I0 country US does not exist in procedure TAXUS</b>
Message no. FF713
<b>Diagnosis</b>
You entered a tax code which is not defined for the country of the company code to be posted to in the tax calculation procedure.
I went to FTXP and I tried to input 0% in the A/P Use Tax Distribu area under the A/P Sales Tax 1 Use MW1 field. However, when I tried to SAVE, I got the following error:
<b>Define the tax code on level 210</b>
Message no. FS780
I also put the Tax GL account in, but still got the same error.
<b>Am I using the right Tax Type? What I mean is should I be using A/P Distributed, A/P Undistributed, or A/P Use Tax Distribu?</b>
My A/R sales tax is working fine. The SD consultant and I have got the A/R 7.5% sals tax working well. <b>Does the MM consultant need to also do some tax config on his part for ?</b>
Thanks in advance!