A Tax Item is being Pulled Up even if Default Tax Code is Set to -Not Taxable-

Problem:

A Tax Item is being pulled up even if Default Tax Code is set to -Not Taxable-

 

Additional Information:

- Enable Tax Lookup On Sales Transactions = T

- Default Tax Code = -Not Taxable-

- Home Tax Code fields = not empty

- Tax Code Lists Include = Tax Groups and Tax Codes OR Tax Groups only

- Item is set to be Taxable

- Same behavior whether Advanced Taxes is enabled or not

 

Alternate Solution:

When a customer who:

- is taxable, and

- has no address

is used on a sales transaction, NetSuite would use the Tax Item selected in the Home Tax Code for the State where the Company (Setup > Company > Company Information) is located and not the Default Tax Code.

 or

- is taxable, and

- has no zip code but has a State indicated in its address

is used on a sales transaction, NetSuite would use the Tax Item selected in the Home Tax Code for the State where the customer is located and not the Default Tax Code.