Tax Setup Hierarchy

Epicor ERP 10
1

Does anyone know the hierarchy in which Epicor pulls a defined tax category? (E.g. non-tax, tangible property)
This is what am guessing at the moment, going from top-down to the most granular:

  • Company Config
  • Customer Master
  • Ship To
  • Product Group
  • Part Master

Am I missing a level?

1 Like
2

Just to clarify, you are talking about whether or not a Customer gets charged tax on an invoice?

3

Are there two trees to follow?
If every part on a sales order is set as taxable and the customer is set as tax exempt, then will the entire invoice be tax exempt?
If that’s the case, what’s the hierarchy for the customer taxability and separately, the hierarchy for setting how the part is taxed.

4

I have only used the taxes on the customer but just took a quick look at part.

I agree that it is probably Part Master - Product Group - Company. Just not sure if Tax Category exists at the Company.

But yes, you are correct and it is a double path option. At my old company, we did not have any taxes on the parts at all and determined what needed to be taxed based off of customer. We even had to break down into state counties for some taxes, so Epicor is very flexible if you don’t have tax connect.

For Customer Master, I believe it is Ship To - Bill To - Customer - Company.

5

Will the customer setup override anything that’s part based?

6

Yes. From my experience, it has always been more the Customer that drives it as a part may be taxable for one customer as their use is different than another customer who is tax exempt. As an example, I work in Massachusetts and if a company is buying an item for R&D use, it is not taxable by MA but is taxable if not being used for R&D.

This has been my prior experience. Not knowing exactly what your requirements are makes it a little tougher to advise. I guess you might have a situation where the types of product you sell have different tax rates. You might be a distributor of cigarettes and alcohol.

7

Thanks, I appreciate your input.
That gets me to where I need to be.

8

Hi @hmwillett

Are you aware of any documentation on tax hierarchy?

We’ve encountered an issue where are POs are calculating the tax based on the customer location and not the shipto address?

Thanks

Matt