Hierarchy for Defaulting VAT Codes on POs and Vendor Invoices

Each line of a purchase order includes a VAT code indicating the VAT category into which the line amount should be accumulated.  This code defaults from the Item/Vendor Relationship File.  A default VAT code to be used on all Item/Vendor Relationship records for a vendor can be established on the Vendor Maintenance File.  Defaults for all vendors can be defined on Reference File category 206.  You may override the default VAT code on any individual line.

The VAT code entered on the purchase order is carried over onto the corresponding purchase order receipt.  When the 3-way matching feature is used, this information is defaulted to the invoice lines.  When 3-way matching is not used, the VAT information for individual invoice lines is defaulted from the Vendor Master File.