Validation of Tax Status

The table below explains how the tax status is validated when you click Validate Customer or Validate Vendor on the account record when the Multiple Companies Configuration feature is enabled, meaning that the Use Multiple Companies Configuration field in the Accounting Settings custom setting is selected.

The validation process checks the following:

• The Tax Status field on the Multiple Companies Account Config is set to EC Registered.
• The Tax Status field is not populated and the current company is not VAT or GST.
• The Tax Country Code and Tax Registration Number fields are populated on the account record.

Tax Status Validation

Tax Status on Multiple Companies Account Config is EC Registered	Tax Country Code Field Is Populated on Account	Tax Registration Number Field Is Populated on Account	Tax Status Is Validated
Yes	Yes	Yes	Yes
Yes	No	N/A	No. You receive an error because the Tax Country Code field must be populated.
Yes	N/A	No	No. You receive an error because the Tax Registration Number field must be populated.