Certain suppliers that your customer regularly deals with are exempt from tax. How would you configure tax for this?
A. Enable the relevant suppliers for Offset Tax and create an Offset Tax to remove the calculated tax line from these suppliers.
B. Define a Tax Status and Rate for Exempt, define a Party Fiscal Classification of Exempt, assign it to the relevant suppliers, and write a rule to incorporate the exempt Party Fiscal Classification.
C. Create a new Tax Regime for the Exempt tax and subscribe the exempt suppliers to the tax regime on the Configuration Options tab.
D. Define a Tax Status and Rate for Exempt, define a Supplier Fiscal Classification of Exempt, assign it to the relevant suppliers, and write a rule to incorporate the exempt Supplier Fiscal Classification.
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why is the answer B??
The answer should be D
A-Offset tax is not used for this case
B-Party Fiscal Classification is related to Legal Entities or Business units and not suppliers
C-You don’t create tax regime for an exempt rule
D-Supplier fiscal Classification is the right answer. Please refer to the note below
How to Create Fiscal Classification Codes For Supplier Type (Doc ID 1621340.1)
A
B
why is answer B??
D