Subject Area Concepts
The Logical 05300 Taxation Inventory Control Document View diagram shows the inbound view of taxation which marks where merchandise is transferred from a supplier to the retailer.
The transfer of ownership of merchandise from a supplier to the retailer is captured through the InventoryControlDocument entity and its line item dependent entity types. Accordingly, taxation on inbound merchandise is represented through relationships between inventory control documents and taxation entities (for example, TaxGroupRule and TaxRateRule discussed earlier). Taxes may be calculated at a summary level for a group of items (ICDTaxLineItem entity) or on a line item by line item basis (ICDMerchandiseTaxLineItem entity). This view supports consumption taxes levied at receipt time. The Value Added Tax (VAT) and Goods and Services Tax (GST) models are examples.