Tax Code Determination Rules (SAP Business One)

A set of parameters that define the default control indicator in a sales or purchasing document line.

Tax code determination in SAP Business One can be customised by defining rules. These rules determine which tax code is used in a document based on various criteria such as item groupscountries or certain transaction types.

You can find the tax code determination rules at Administration > Definition > finance > Tax > Tax code determination.

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Functionality of the tax code determination:

You can define several rules for tax code determination.
The rules are applied in order of priority.
If a rule applies, the control indicator defined in the rule is used.
If none of the defined rules apply, the standard tax code determination sequence is used.

Example of a tax code determination rule:

Criterion: Article group = "Food"
Tax code: V1 (7% VAT)

This rule would result in the tax code V1 (7% VAT) being used automatically in all documents containing articles from the article group "Food".

Advantages of tax code determination:

Automation: The tax codes are determined automatically based on the defined rules, which reduces manual effort and avoids errors.
Flexibility: You can customise the tax code determination to the specific requirements of your company.
Consistency: The use of the correct tax codes is ensured, resulting in consistent tax calculation and posting.

Important notes:

Tax code determination rules should be defined carefully and in consultation with the tax consultant.
The rules should be reviewed regularly and adjusted if necessary to ensure that they comply with current tax regulations.
The tax code determination can also be used in conjunction with the DATEV export. In this case, the tax codes must be entered with the corresponding DATEV-posting keys can be mapped.