Enter Customer Internal Purchase Direct (IPD) Tax Information

Explanation

The Enter Customer IPD Tax Information activity is used to enter tax information to be used in the inter-site order functionality. This refers to when the customer orders goods from one site, ordering site, and an internal purchase order is sent to another site, supplying site, requesting goods to be sent directly to the customer. IPD refers to the applicable supply code used on the customer order line in this scenario, which is expressed as Internal Purchase Direct, shortened as IPD.

When ordering and supplying site belong to different companies, this implies that an invoice will be created in the supplying company to be sent to the ordering company, but the goods will be delivered directly to the end customer. Within the European Community (EC), the tax information to be applied in such a scenario is determined by considering in which countries the end customer, ordering company and supplying company are situated, as this has an impact whether or not tax will be charged. If tax is not to be charged, and this refers to a delivery within EC, it is required to also quote a Tax Number to be entered as Tax ID Number. Also it is required to enter a Tax Free Tax Code when tax will not be charged.

The IPD tax information can be entered both in Customer/Address/Tax Information tab as well as in Customer/Invoice tab. The difference being that in Customer/Address/Tax Information tab, the tax information is entered for a specific customer address ID, whereas in Customer/Invoice tab, the tax information is entered for a specific delivery address country. Even though two different tabs exist to handle IPD Tax Information, it will not be required to enter data in both tabs. If you have several defined Address ID for a Customer, it will still be enough to just enter information in the IPD Tax Information tab for the applicable delivery address countries. When using a single occurrence address in the customer order, information can only be handled in the Customer/Invoice tab.

Prerequisites

This activity requires that information has been added in Customer/Address and Customer/Invoice tabs. The tax codes must have been defined in the Tax Codes windows in IFS/Accounting Rules and the tax liability information in the Tax Liability window of IFS/Enterprise.

Inter-site order functionality must have been set up with sites belonging to different companies.

System Effects

When releasing a customer order with supply code Internal Purchase Direct in the ordering company, the system will first check if there exists IPD tax information in Customer/Address/Tax Information tab for the applicable customer address ID and the supplying company. If not, the system will continue to check for information in Customer/Invoice tab for the applicable delivery address country. When using a single occurrence address, the system will directly check the Customer/Invoice tab for the delivery address country.

The system will retrieve the tax information from IPD Tax Information tab to the internal purchase order line and display the information in the Purchase Order Line Address dialog. The information will then be included in the ORDERS message sent to the internal supplier, and eventually be used in the internal customer order line and invoice created in the supplying company.

Window

Customer

Related Window Descriptions

Customer, Customer/Address/Tax Information/IPD Tax Information, Customer/Invoice/IPD Tax Information

Procedure

In the IPD Tax Information tab:

  1. Open the Customer window. Click the Address tab and select the address ID for which you want to enter IPD Tax Information. Click the Tax Information tab for the applicable company to which the ordering site is connected.
  2. In the sub tab for IPD Tax Information, create a new record to enter the company to which the supplying site is connected as supplying company.
  3. The Delivery Address Country field is automatically populated with the country entered in the General Address Info tab.
  4. Enter the applicable Tax Liability based on where the end customer, the ordering company and supplying company are situated.
  5. If the tax liability is Exempt, i.e. tax will not be charged, it is also required to enter a Tax Free Tax Code for the supplying company.
  6. If the Tax Liability is Exempt, and the delivery of goods is within EU, it is also required to enter a Tax Number for the ordering company in the Tax ID Number field.
    To validate the tax identity number right click and click the Validate Tax ID Number option. If the entered tax Identity number is correct the Tax ID Validated Date field will be automatically updated based on the system date.
  7. If Tax ID Types exist for the country to which the ordering company is connected, it is also required to enter a Tax ID Type if a Tax ID Number is entered.
    Note:     EU country Tax ID Number validation will be based on the country code prefix in Tax ID Number and for countries other than EU countries, to validate Tax ID Number it is mandatory to enter the Tax ID Type.
    A predefined Tax ID Type GBTAX has been introduced for country code GB for the Tax ID Number validation functionality. Therefore, if the user requires to create a Tax ID Number for customer, company or supplier with no Tax ID Type for GB it will require to manually delete the predefined Tax ID Type for country code GB.
  8. Save the information.

In the IPD Tax Information tab:

  1. Open the Customer window. Click the Invoice tab and select the company for which you want to enter IPD Tax Information. The company refers to the company to which the ordering site is connected portrait
  2. In the IPD Tax Information sub tab, press new to enter the company to which the supplying site is connected as supplying company.
  3. Enter the Delivery Address country or countries that are applicable for the customer.
  4. Enter the applicable Tax Liability based on where the end customer, the ordering company and supplying company are situated.
  5. If the Tax Liability is Exempt, i.e. tax will not be charged, it is also required to enter a Tax Free Tax Code for the supplying company.
  6. If the Tax Liability is Exempt, and the delivery of goods is within EU, it is also required to enter a Tax Number for the ordering company in the Tax ID Number field.
    Note:     To validate the tax identity number right click and then click the Validate Tax ID Number option. If the entered tax identity number is correct the Tax ID Validated Date field will be automatically updated based on the system date.
  7. If Tax ID Types exist for the country to which the ordering company is connected, it is also required to enter a Tax ID Type if a Tax ID Number is entered.
    Note:     EU country Tax ID Number validation will be based on the country code prefix in Tax ID Number and for countries other than EU countries, to validate Tax ID Number it is mandatory to enter the Tax ID Type.
    A predefined Tax ID Type GBTAX has been introduced for country code GB for the Tax ID Number validation functionality. Therefore, if the user requires to create a Tax ID Number for customer, company or supplier with no Tax ID Type for GB it will require to manually delete the predefined Tax ID Type for country code GB.