The system calculates taxes on logistics charges and creates tax detail records for them, identified with unique tax transaction types.

For inbound charges, the tax status depends on the tax data defined for the charge in Logistics Charge Code Maintenance. Outbound charges use the tax parameters associated with the freight charge on the order or shipment.

For details on calculating taxes with Global Tax Management (GTM), see QAD Global Tax Management User Guide.

The tax point for a logistics charge is based upon the setting of Accrue Tax at Receipt for applicable tax rate in Tax Rate Maintenance (2.13.13.1). The value of this field applies to both inbound and outbound charges.

Taxes on logistics charges are not displayed to the user and do not print on formal inbound or outbound documents. They can be viewed using Tax Detail by Transaction Inquiry (2.13.15.2) and Report (2.13.15.3). They can, however, be viewed and edited when the invoice is recorded in Supplier Invoice Create.

When determining the tax environment for inbound charges, the system uses the following data:

If the system cannot find a tax environment, the default tax environment from Global Tax Management Control (2.13.24) is used.

When determining the tax rate, the system uses:

The calculation of taxes on outbound logistics charges is similar to the tax calculation that occurs for the associated order. Unique logistics charge tax transaction types are used. These tax transaction types can be used to distinguish the tax on the freight accrual from the standard transaction tax.

Outbound Logistics Tax Types lists the outbound logistics tax types and the related standard tax transaction type. Distribution orders do not have a standard tax type since unless you are using Logistics Accounting, taxes are not calculated.