If you use taxed prices for sales orders, the system displays item prices that include taxes. You can either enter the taxed prices or allow the system to calculate the taxed prices, depending on the information that you enter and the type of sales order. This Enhancement was bought by Bug 11036125: E1 APPS - SOM TAXED UNIT PRICE from 9.0 Product Release.
To do so, below set up must be done for taxed prices:
In "Branch/Plant Constants program (P41001)" - select the "Enable Sales Taxed Prices" check box on the "System Constants" form. If you select this constant, then you must also select either the By Sold To or the By Ship To constant. Therefore, when you enter values in the Sold To and Ship To fields on a sales order, the system checks setting on the System Constants form to determine whether the system is set to use the Sold To or Ship To customer.
In the Customer Master program (P03013) select the Use Taxed Prices check box on the Billing Information form. The system displays the Use Taxed Prices check box on the Billing Information form only when you enable taxed prices for sales orders in the system.
For more information please see JD Edwards Enterprise One Taxed Prices for Sales Orders 9.0 (Doc ID 1234293.1)