Base Freight Tax on Sales in SOP

When selected, the feature will base freight taxability on the line-items in a document in the Sales Transaction Entry Window. This applies to freight entered in the freight field at the bottom of the Sales Transaction Entry window. If Tax by Item Category (TBIC) is enabled then this also applies to line-items that have been assigned to the FREIGHT item category in the DZ Item Supplement window.

Freight taxability will be set to Base on Customer if:

• The Tax Location for every line-item in the document is in the same state.
• That state has been set to Base Freight Tax on Sales in SOP in the DZ State Setup Window.
• At least one line-item has an extended price amount and a tax amount.

Freight taxability will be set to Nontaxable if:

• The Tax Location for every line-item in the document is in the same state.
• That state has been set to Base Freight Tax on Sales in SOP in the DZ State Setup Window.
• No line-item that has an extended price amount has a tax amount.

Freight taxability will be set to Base on Customer and assigned a taxable schedule if:

• The Tax Location for every line-item in the document is in the same state.
• That state has been set to Base Freight Tax on Sales in SOP in the DZ State Setup Window.
• At least one non-freight line-item has an extended price amount and a tax amount.

Freight taxability will be set to Base on Customer and assigned an exempt tax schedule if:

• The Tax Location for every line-item in the document is in the same state.
• That state has been set to Base Freight Tax on Sales in SOP in the DZ State Setup Window.
• No non-freight line-item that has an extended price amount has a tax amount.

If this feature is not selected or if neither of the above cases apply, the freight taxability will not be modified by this feature.

DZ State Setup Window