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US Sales Tax: Reason Why The Tax Code in Transactions Defaults to -Not Taxable- Instead of the Tax C

edited Jan 3, 2020 11:34AM in Ask A Guru

As a brief background, the NetSuite System pulls the Tax Code to be used in transactions based on a Lookup Hierarchy shown below:

  1. Tax Item under Customer Record (Lists > Relationship > Customer > Financial Subtab > Tax Item)
  2. Tax Schedule under Item Record (Lists > Accounting > Items > Accounting Subtab > Tax Schedule)
  3. Default Tax Code set in the Set Up Taxes Page (Setup > Accounting > Set Up Taxes Page)

(For detailed information, visit SuiteAnswers ID: 86008 U.S. Tax Lookup Hierarchy)

There are instances where user expects the system to pull the Tax Code based on the Shipping Address (number 2 in the hierarchy) since no Tax Item is set in the Customer Record and the Nexus in the Tax Schedule is marked as Taxable. However, the transaction defaults to

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