Tax and Discount Defaults
Depending on how you have set up your customers, customers may have default tax codes (Tax 1-4) and a default discount code. Parts also have default Tax and discount codes. The following tables illustrate how the system determines what codes to use when Customer and Part codes do not concur. When you change legacy tax percentages or replace tax codes, update defaults and open documents using Changing Legacy Tax Percentages.
Note: Any tax code can be overridden when invoicing occurs.
Tax 1 and Tax 2 Defaults
To use the table, choose the appropriate Customer Tax Code column. Choose the appropriate Part tax code row. The default tax code appears at the intersection of the row and column.
| Customer Tax Code | ||||||
|---|---|---|---|---|---|---|
| Part Tax Code | BLANK | 1 - 9 | A - W and Z | Y* | X* | |
| BLANK | BLANK | 1 -9 | A - W and Z | Y | X | |
| 1 - 9 | 1 -9 | 1 -9 | A - W and Z | Y | X | |
| A - W and Z | A - W and Z | A - W and Z | A - W and Z | Y | X | |
| Y | Y | 1 -9 | A - W and Z | Y | X | |
| X | X | X | X | X | X | |
* Tax Codes X and Blank have special meaning.
Note: If both Customer and Part tax codes are numeric, the Part Tax Code becomes the default, even if the Customer Tax Code is higher.
Note: Alpha codes (A - W and Z) are tax exemption codes.
Examples:
If a part has a tax code of 1 and the customer has no tax code assigned (blank), the default tax code is 1.
If a part has a tax code of 1 and the customer has an alpha tax code of A, the default tax code is A.
Tax 3 and Tax 4
No defaults apply to Tax 3 and Tax 4.
Discount Defaults
To use the table, choose the appropriate Customer tax code column. Choose the appropriate Part tax code row. The default tax code appears at the intersection of the row and column.
| Customer Discount Code | |||||
|---|---|---|---|---|---|
| Part Discount Code | BLANK | 1 - 9 | A - Z (excluding X) | X* | |
| BLANK | BLANK | 1 -9 | A - Z (excluding X) | X | |
| 1 - 9 | 1 -9 | 1 -9 | A - Z (excluding X) | X | |
| A - Z (excluding X) | A - Z (excluding X) | A - Z (excluding X) | A - Z (excluding X) | X | |
| X | X | X | X | X | |
* Discount code X has special meaning.
Note: You cannot assign a discount code that is greater than the code assigned to the part.
Examples:
If the part has a discount code of 1 and the customer has a discount code of 2, the default discount code is 1.
If the customer has a discount code of X and the part has a discount code of 1, no discount is allowed. In any case, you cannot assign a discount code at the time of sale that is greater than the code assigned to the part.
Revision: 2026.10