Tax Configuration - Based on Event Type
Summary:
Business Case:
In the construction industry, tax rates can vary depending on the type of deduction, such as penalties or back charges. For instance, penalties may be subject to VAT, whereas back charges may not be. In such scenarios, each deduction type is treated as a separate billing event type under a single contract line when invoicing the customer from project billing.
Issue:
In the configuration under Manage Application Tax Options, the tax rate is determined based on the following sequence:
- Contract Line
- Expenditure Type / Event Type / Retention
Given this setup, the appropriate tax rate is being applied based on the deduction type.
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