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Administrator Guide
Last Updated: 2023-06-23
Configure Transaction Tax Rule Exceptions

Configure Transaction Tax Rule Exceptions

  • Create tax rule exception groups.
  • Create transaction tax statuses.
  • Create transaction tax item groups.
  • Configure transaction tax rules for countries based on exception groups.
  • Security:
    Set Up: Tax
     domain in the Common Financial Management functional area.
You can configure rule exceptions for transaction tax rules when the ship-to country isn't the appropriate country to match country tax rules.
  1. Access the
    Create Transaction Tax Rule Exception for Country
     task.
  2. Design the country rule lines from top to bottom.
    The best practice is to place rule lines for your most specific use cases first. Place less specific rule lines toward the bottom.
    As you complete the task, consider:
    Option Description
    Transaction Tax Status
    Select to match using transaction tax statuses for company, customer, or supplier based on the country.
    Transaction Tax Item Group
    Select to have the rule line apply to all items with an item group rather than adding a line for each item.
    Spend Category
    Select to define purchase category, which automatically updates the
    Item
     column to list purchase items only.
    If you leave
    Item
     blank, select a spend category to apply the rule line to all purchase items with the selected category.
    Revenue Category
    Select to define sales category, which automatically updates the
    Item
     column to list sales items only.
    If you leave
    Item
     blank, select a revenue category to apply the rule line to all sales items with the selected category.
    Item
    Select a purchase or sales item to create a rule line that applies specifically to that item. To have the rule apply to all items in a spend or revenue category, leave blank.
    Exception Group
    If the transaction matches the dimensions of this rule line, Workday uses the transaction tax rule for country based on this exception group.
The country, tax status, or item type might produce a different answer for a supplier invoice versus a customer invoice in cross border scenarios.
  • Transaction ship-to is France, buyer is French VAT registered, but Netherlands (NL) supplier isn't French VAT registered.
  • Supplier Invoice self-assesses VAT in country of Ship To (France).
  • Related customer invoice charges zero rated (NL) VAT in billing country (NL) of the company.