Shipto Record Creation and Editing

Taxtype Assignment

When a shipping address or Shipto record is created for a customer, the current Taxtype from the customer record is defaulted into the Shipto record (this will normally be RETAIL).   The Taxtype in the shipping address can be changed as required during setup, based on the customer tax status when shipping to that particular address. 

If the shipto record you are creating should have different Taxtype information than the customer the address is being created for, you should update the Taxtype Tax Number and Tax Date in the  Shipto address as required.

Taxcode Assignment

The Taxcode field in the Shipto record is normally loaded automatically based on the zipcode in the shipping address.  This behavior assigns the proper tax rate and tax authority to each new shipto address as it is created and it matches the way the system behaves when you set up a new customer.

The Taxcode for a specific shipto can also be manually selected when required (this may be necessary, when the address is out of the US, the zipcode does not have a valid taxcode associated with it, or when the situation does not support automatically assigning the taxcode. 

Notes:

The system creates a default shipto address record for each customer when a sales order is being entered for the customer and a default shipto address is not already specified for the customer.

The system also allows you to store a Tax Certificate Number and Tax Date (expiration date for the tax certificate) in each Shipto Address.

Due to these reasons, you should generally leave the customer Taxtype as RETAIL, and set up a new shipto address – with a Taxtype of RESALE, when a resale certificate is received from a new or existing customer and you do not already have a shipto record set up for the State issuing the certificate.  This allows you to tie each resale shipto record to a specific tax document or certificate, and to audit the certificates to id those shiptos that are no longer pointing to valid certificates.

More:

Customer/Shipto Tax Information -Example