Does anyone have experience with Intercompany tax issues? We have one subsidiary that must have IC sale transactions marked as Resale when selling to another subsidiary within the same state. I have set up the ICO customer entity with the Resale tax code as the preferred tax code (we are still using legacy taxes) but the SO's get generated with - not taxable - instead of the preferred tax code. If I mark the entity as taxable then it sets the calculated tax code (with tax) and not the preferred tax code. The other situation is a foreign subsidiary that has managed inventory within the same warehouse. The IC Sales Order should be processed with an export tax code but it's the same situation where it gets set as - not taxable - instead of the preferred code. Any idea how to manage this with legacy tax? I do plan on switching to SuiteTax but will have to thoroughly test in SBX before making the switch so that will be a little ways down the road

It seems to me that this is a netsuite limitation in the case of IC. I opened a ticket with netsuite who answered me this. I therefore had to create a custom record in order to create a sort of mapping table of intercompany flows by entering the vendor, the subsidiary, the tax code and the counterparty. A script will read this custom record and will therefore populate the correct tax code for the PO/SO

@Marc Thanks for the response and good to know so I stop banging my head on this one

So here's the scoop. While I'm not looking at your account I would bet the entity that is getting the Not Taxable result does not have the same nexus setup as the other entity. You can try to select tax codes but if there is no nexus I am pretty sure the filter takes over and you get the default value found under setup taxes which is usually Not Taxable. There is a bit of documentation out there for nexus and tax code determination for legacy tax but its really a pain. Take a look at your nexus setup and see if that clears things