does the item and it’s tax setup affect the tax calculation during sales order

Hi,

My question is, In the item branch master, the item has a Tax field: TAX1. (I believe the logic uses the SHMCU to look up the branch record)

I thought if the item has an ‘N’, irrespective of what the customer set up is, the line in the order will not have tax.

 

From what I’m seeing when TAX1 = ‘N’ the line still is being taxed in the order

Please guide me on this.

Thanks,

Jaha