Using the Sales and Use Tax Interface > Taxing Repair Center Versus Field Repairs
  
Taxing Repair Center Versus Field Repairs
Service and Support Management (SSM) records and tracks both field and repair center repairs:
Field repair: Customer item is repaired at an end-user site.
Repair center repair: Customer item is repaired at the service provider’s site.
Note: Repair center is also known as depot.
Call Activity Recording (11.1.1.13) correctly taxes both repair center repairs and field repairs. SUTI determines how to calculate taxes based on the work code—defined in Work Code Maintenance (11.21.1)—associated with the call line. Tax rates are calculated based on where the repair takes place.
If the Tax at Repair Center field is Yes for the work code, labor and parts are taxed at the rate associated with the address record of the service provider. The ship-from and ship-to tax zones are set to the tax zone of the service provider (based on item-site).
If the Tax at Repair Center field is No, labor and parts are taxed at the rate associated with the address record of the end user. The ship-from tax zone is set to the tax zone of the service provider (based on item-site). The ship-to tax zone is set to the tax zone of the ship-to customer.
The work code and site associated with the call header determines tax calculation for trailer codes.
Because of the impact of the work code and site fields on tax calculations, special processing occurs in Call Activity Recording (CAR) if a user changes the header site. Changing the header site will affect any new lines added to the call. It will also affect the calculation of new trailer charges added in Call Invoice Recording (11.1.1.15) as well as the recalculation of trailer charges on an existing call invoice if the invoice is reviewed in Call Invoice Recording (CIR). When the header site is changed in CAR, a warning displays indicating the potential effect on trailer charges.
Changing the work code on the call header in CAR or CIR has a similar effect, since the Repair Center setting associated with the work code determines the addresses the system uses for finding tax zones.