Non-US Nexuses (i.e. Australia, UK) : Tax Rate in Purchase/Sales transaction is Undefined

Scenario:

•        Navigate to Setup > Accounting > Tax Codes

•        Tax Code is Activeand

•        Tax Code is shared among subsidiaries

•        Vendortagged of Tax Code has the followingfield values in the Vendor Record:

•        Category = Tax Agency

•        Inactive = False

•        Purchase and Sales Tax accounts tagged to Tax Code are active under Setup >Accounting > Tax Control Accounts

•        UseTax Code in a transaction like Purchase Order (Transactions > Purchases > Enter Purchase Orders)

•        Actualresults in the transaction:

•        Tax Rate column value is UNDEFINED

•        Unableto compute Tax Amount

Findings:

•        View tax code record in Setup > Accounting > TaxCodes

•        Available On is:

•        Set to Sales Transactions if Tax Rate is Undefined in Purchase Order,Vendor Bills, Vendor Bill Credit (purchase transactions)

•        Set to Purchase Transactions if Tax Rate is Undefined in Sales Order,Invoices, Cash Sales, Credit Memo (salestransactions)

Solution:

•        Available On should be set to BOTH for user wishes to use it in both Sales Transactions and Purchase Transactions

•        Toggle the value of the Tax Type field so that AvailableOn will show all options if:

•        Available On is set to Sales Transactions(Purchase Transactions) and

•        Dropdown is only showing one option