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Former Member
Sep 07, 2007 at 03:40 PM

A/P Tax configuration

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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!