Tax Codes in Customer & Vendor Master Record

Question

Hi Team,

Hopefully this is a quick question, when the Tax codes are populated in the Vendor & Client Master Record is this used as the default when the transactions are created?

We actually get a feed from salesforce to create a Purchase order and Sales order and in the data feed there maybe tax data. So I am wondering that if we had the tax codes in the Master would NetSuite simply use that as the default or would it use data from the feed?

Thanks

Patrick Fresnosa-Oracle · Accepted Answer

Hi @Baz Steele,

I hope you are doing well.

Yes, that is correct. The Tax code  set on a Vendor or a Customer.

May I know if you are using SuiteTax or Advanced Taxes or any third party tax provider?

In legacy tax (Advanced Taxes) , if you have set up a Tax Code in the customer record, the Tax Code will be used in the transaction

Please check this example: U.S. Tax Lookup Hierarchy

For SuiteTax, the same logic are as follows:

Please check:

U.S. Tax Lookup Hierarchy

Tax Code Lookup for Sales

Tax Code Lookup for Purchases

Hope this helps!

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Patrick Fresnosa-Oracle · Accepted Answer

You're welcome @Baz Steele!

Yes, that is correct, this has a Prospective effect, meaning this will affect the future transactions only,

For example:

An Italian Subsidiary has an Italian Customer (Local) and is using Advanced Taxes, there is an Invoice for this customer with a tax code associated to it (VAT exempt) and dated August 2023:

This May 2024, they have decided to add an 8% tax code to their Sales Transaction for this customer, moving forward, so they added a default tax code in the Customer record:

This does not affect their existing Invoice:

Upon creating the new invoice, the default tax code in the customer recorded is looked up:

I hope this helps!

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