Question
A legal entity has locations and customers in multiple states within the United States.
You need to ensure that taxable customers are charged sales tax for taxable items in their delivery location.
Which three settings must you configure? Each correct answer presents part of the solution.
- A. the Sales tax group on the Customer record Correct
- B. the Terms of delivery setup
- C. the Item Sales tax group on the Item record Correct
- D. the Sales reporting codes
- E. the Sales tax codes Correct
Explanation
Sales tax applies where the sales tax codes in the customer's sales tax group intersect with the codes in the item's item sales tax group, so you need the sales tax group on the customer (A), the item sales tax group on the item (C), and the sales tax codes themselves, with the rates for each state (E). Terms of delivery describe shipping terms and do not drive tax calculation. Sales reporting codes only group amounts for reporting and do not determine whether tax is charged.
