Working with Tax Code Determination Rules 
The following information is relevant for all localizations except Brazil, India, Israel, and Puerto Rico.
You define tax code determination rules to determine how the application proposes tax codes in sales and purchasing documents.
Caution
If several superusers are connected to the same company database and add a tax code determination rule at the same position in the hierarchy, the database may become inconsistent.
Procedure
Defining Tax Code Determination Rules
From the SAP Business One Main Menu, choose
Administration 
Setup Financials Tax Tax Code Determination
.The Tax Code Determination Rule Setup window appears.
Specify at least the following mandatory data:
Document Type
Business Area
Condition
You can specify up to five conditions, for example, ship-to address, item, or user-defined field (UDF), and their values per rule.
NoteIf you create several rules with the same conditions, the application cannot apply the rule, because it is not unique. For example, rule 1 has the condition Ship-To Address, and rule 2 also has the condition Ship-To Address.
End of the note.Value
If you do not manage freight in documents: Line Tax Code.
If you manage freight in documents: Line Freight Tax or Header Freight Tax. In this case, specifying a line tax code is optional.
Filling in the other columns is optional. For more information, see Tax Code Determination – Setup Window.
RecommendationSpecify the data in the order given here, that is, first the document type, then the business area, and so on.
End of the recommendation.If you selected UDF as a condition, the User-Defined Fields Selection window appears. In this window, select the relevant UDF.
Repeat step 2 for all tax code determination rules that you want to define. Note that you can copy, cut and delete several rows at the same time by choosing CTRL plus the relevant option from the right-click menu.
To save your data, choose Update and OK.
The application displays a system message asking you to confirm the change.
To confirm the change, choose Yes.
Updating Tax Code Determination Rules
From the SAP Business One Main Menu, choose
Administration Setup Financials Tax Tax Code Determination
.The Tax Code Determination Rule Setup window appears.
Go to the tax code determination rule you want to change. You can search for a rule by entering a search term (wild cards are supported) in the search field and choosing the Find button. To go back to the full list, choose Show All.
Change the relevant data.
To save the change, choose Update and OK.
The application displays a system message asking you to confirm the change.
To confirm the change, choose Yes.
Deleting Tax Code Determination Rules
From the SAP Business One Main Menu, choose
Administration Setup Financials Tax Tax Code Determination
.The Tax Code Determination Rule Setup window appears.
Go to the tax code determination rule you want to change. You can search for a rule by entering a search term (wild cards are supported) in the search field and choosing the Find button. To go back to the full list, choose Show All.
Select the line of the rule that you want to delete, right-click, and choose Delete Row. To delete several rules at the same time, hold the CTRL key when clicking the tax code determination rule lines.
To save the change, choose Update and OK.
The application displays a system message asking you to confirm the change.
To confirm the change, choose Yes.
Changing the Order of Tax Code Determination Rules
Changing the order of tax code determination rules affects the process of tax code proposals in sales and purchasing documents.
From the SAP Business One Main Menu, choose
Administration Setup Financials Tax Tax Code Determination
.The Tax Code Determination Rule Setup window appears.
Select the tax code determination rule that you want to move. You can move only one rule at a time.
Drag and drop the rule to the desired location in the hierarchy.
To save the change, choose Update and OK.
The application displays a system message asking you to confirm the change.
To confirm the change, choose Yes.
Defining Tax Code Determination Rules for Freight Charges
You can define tax code determination rules for freight charges only if the Manage Freight in Documents field is selected in Administration System Initialization Document
Settings .
From the SAP Business One Main Menu, choose
Administration Setup Financials Tax Tax Code Determination
.The Tax Code Determination Rule Setup window appears.
Specify the data as described above in Defining Tax Code Determination Rules. In addition, enter the following data:
Line Freight Tax
Header Freight Tax
To save your data, choose Update and OK.
The application displays a system message asking you to confirm the change.
To confirm the change, choose Yes.