For each tax group, rates for that group can be defined and it can be determined when they apply.
The definition is done in two levels – the geographic territory that this tax applies and the rates in this region for any product and use combination.
The top level of the tax definition structure is the Tax Group table. Each Tax Group represents a specific tax that could be applied (i.e., State Sales Tax, County Sales Tax, Federal Motor Vehicle tax, etc.).
One Tax Per Transaction
For each transaction, only one tax can be applied from a specific group.
If a group is defined as a local city tax and has five different rates, based on product location or use, only one rate will be applied for a specific transaction (or none). The system will determine if there are matching records for any given transaction and will choose the best matching transaction.