Configure Transaction Tax ID Exceptions

Security: These domains in the Common Financial Management functional area:

Set Up: Company General

Set Up: Tax

Configure exception rules to override the default selection of transaction tax IDs for companies, customers, and suppliers on customer invoices and supplier invoices. This ensures that Workday automatically populates the tax IDs that you specify on customer and supplier invoices.

Access the

Maintain Transaction Tax ID Exception Rules

task.

Select the

Revenue

tab to create tax ID exception rules for sales items or the

Spend

tab to create tax ID exception rules for purchase items.

Create a tax ID exception rule.

Workday processes rule lines on the invoice from the most specific rule to the least specific rule so you should order your revenue and spend tax ID exception rule lines accordingly. Workday processes:

The invoice header for the parties to the invoice.

The ship-to address for the country.

The invoice lines for the tax applicability.

Workday applies the highest ordered rule that results in a match.

As you complete the grid, consider:

Option	Description
Company or Supplier	Select one or more companies or suppliers that the exception rule applies to on customer or supplier invoices.
Ship-to-Country	Select one or more countries that the exception rule applies to on a spend or revenue transaction. Workday uses the exception rule when the country or countries you select match the ship-to address on supplier or customer invoices.
Ship-to-State/Region	Select a ship-to state or region within the ship-to country. The ship-to state or region is only selectable if you select only one ship-to country.
Logic for Company Tax ID Type, Logic for Customer Tax ID Type, or Logic for Supplier Tax ID Type	Select one of these options to specify what tax ID to return: Default Behavior : select if you want to return the default tax ID for the company, customer, or supplier. Specific Tax ID Type : select if you want to return the exception tax ID that you set up for the company, customer, or supplier. Transaction Tax ID of Primary Business Address ~Country~ : select if you want to return the tax ID for the company's primary business address. Transaction Tax ID of Ship-To ~Country~ : select if you want to return the tax ID for the company's ship-to country. If you select any option other than Default Behavior , and that option doesn't return a tax ID for the company, customer, or supplier, Workday returns the default tax ID.
Company Tax ID Type Override, Customer Tax ID Type Override, or Supplier Tax ID Type Override	Select one of these options to choose the specific (exception) tax ID that you want to override the default tax ID.

Workday uses the tax ID exception rule on the invoice line to return the correct tax ID on customer and supplier invoices.

A customer receives goods in Northern Ireland, which is in the UK. The company that ships the goods is in France, which is an EU country. You have two UK tax IDs set up for the customer: one tax ID for UK VAT, which is flagged as the transaction tax ID, and one tax ID for UK Northern Ireland VAT, which is not flagged as a transaction tax ID. When Workday processes the customer invoice, the transaction tax ID that Workday normally returns for the customer is the UK VAT tax ID. You set up a transaction tax ID exception rule so that Workday returns the UK Northern Ireland VAT tax ID for the customer instead.

Configure Transaction Tax Rules for Countries. Create a transaction tax rule for each country where you file a tax declaration.

Configure Transaction Tax Rules for Items. Create transaction tax rules for revenue and spend items to be used in your transaction tax rules for country. By using the transaction tax item groups, one item rule line defaults for all purchase, sales, or expense items in the tax item group.

Configure Transaction Tax Rules Using Worktags.Create tax defaulting rules using worktags on document lines to enable Workday to populate transaction tax attributes at the line level on supplier invoices, purchase orders, and ad hoc payments.