Sales and use tax calculation requires location information to properly determine where consumption of tangible personal property occurs. This information is in the form of tax jurisdiction codes and is stored on the master records. A tax classification indicator is also stored on some master records. The customer master jurisdiction (representing the ship-to location) and the taxability indicator assist in determining the tax. The plant master record contains a tax jurisdiction code identifying the ship-from location. The material master record has a material tax classification indicator that along with the customer tax classification indicator automatically determine the tax code.

You must carry out the following activities: