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Administrator Guide
Last Updated: 2023-06-23
Set Up Tax Applicability for Financial Transactions

Set Up Tax Applicability for Financial Transactions

You can aid transaction entry and approval by assigning a default tax applicability to sales, purchase, and expense items in transaction lines. You can also configure tax rules that specify an override tax applicability that automatically populates on transaction lines for specific items in specific countries. You can specify tax applicability on these types of transaction lines:
  • Customer invoices
  • Invoice adjustments
  • Cash sales
  • Purchase orders
  • Supplier invoices
  • Ad hoc payments
  • Expense reports
  1. Access the
    Maintain Tax Applicability
     task.
  2. As you complete the task, consider:
    Option Description
    Tax Applicability Code
    Enter a name for the tax applicability that displays for selection within transactions.
    Taxable
    Select to enable tax applicability when Workday calculates the tax amount on transactions.
    Default Tax Recoverability
    Select an available tax recoverability that defaults to the tax recoverability on transactions.
Workday uses the tax applicability and tax code on the transaction line to:
  • Calculate recoverable and nonrecoverable tax amounts for each tax rate within the tax code.
  • Segregate transactions for reporting.