Each customer should be assigned the appropriate Taxcode. The Taxcode is normally based on the zip code in which the customer or shipping address is located. The Taxcode field is a required field which is used by the system to determine the tax rate which applies to sales made within each zip code, and the system will not allow users to create a new customer record without selecting a Taxcode first. In addition, the Customer Master program will automatically fill in the Taxcode when the customer zip code is entered, assuming that the Zip Code and Taxcode files have been properly loaded as described earlier in this document. There are conversion programs available, which can be used to automatically load the Taxcode in all Customer and Shipto records based on the zip code.
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Assign the appropriate Taxcode and Taxtype to all ship to records based on the ship to zip code.