Tax not calculated on Expense Report

Summary:

The Expense Tax classification code (Zero Tax) is attached to the expense template and the same is populated as Tax classification code in the Expense report in Payables. However, instead of Zero tax (as attached to expense template), the system is calculating the Default Tax i.e. Standard 20%.

There is a separate Tax Status created for expense related Tax Rate.

Tax Determination factor set

Determining Factor Class = Transaction Input Factor, Determining Factor Name = Tax Classification Code

Tax Condition set

Determining Factor Class = Transaction Input Factor

Determining Factor Name = Tax Classification Code

Operator : Equal To

Value : Zero tax

Attached the above Tax condition set to Tax Status Rule with Result as Zero Tax Status