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Unable to calculate Taxes after creating the Tax Schedules and Tax Details and setting up the Items. Resolution
Verify the correct option is selected in Company Setup Options.
1. Go to Company Setup Options (Setup | Company | Company | Options) and verify if the Specify Tax Details for Automatic Tax Calculation option is cleared or selected. This option allows you to specify whether or not you want specific Tax Details to calculate Tax.
2. When this option is selected, you can specify which Tax Details are assigned to a Tax Schedule in the Tax Schedule Maintenance window (Setup | Company | Tax Schedules) and how they should calculate Tax. You can select as many Details as you want to calculate Tax for the Schedule in Tax Schedule Maintenance. If the option is cleared, all the Tax Details assigned to the Tax Schedule are used to determine the Tax amount.