Click on the Taxation button to assign particular Tax Types (e.g. UK VAT) to categories and their subcategories. This allows a default tax to be assigned to all line items assigned a particular commodity code. Tax Treatment assigned to category codes will supersede all other tax defaults (i.e. through organisations or Business Rule Groups)

To enable you to see Tax Types on this screen they must first be set up in the Company > Organisation Maintenance > Taxation screen.

1. On the Category Maintenance page, click Taxation.
2. When Category Explorer fully opens click on the Category Code that you wish to assign a Tax Treatment to.
3. A tax code can be assigned to any level within a code hierarchy. If necessary click on the ‘+’ icon to drill into a Category Code to display subordinate levels.
4. The Tax Treatment Assignment by Category screen will open.
5. Select the required Tax Treatment from the drop down list.

• Click Insert.
• You will now have the option to Update or Update and apply to subcategories.

Assign Treatment to Subcategories

A Tax Treatment does not need to set at all four levels of the product classification code hierarchy. If the same treatment is required for an entire segment, family or class it can be entered once at the appropriate level and copied down to its subcategories.

There may be existing treatments set within the selected categories’ subordinate levels. It is therefore necessary to choose one of the following options as appropriate:

• Do not overwrite existing subcategory Tax Treatment; or
• Overwrite existing subcategory Tax Treatment.

Click Continue to copy the setting down to subcategories. A ‘Successfully Copied VAT Treatment to Children’ message will be displayed.