R12 EBtax - Tax on Freight

[Shashi_k]

Hi

We would like to calculate tax on Freight line on Invoice as freight is taxable in some states.

So we do the following

1)Enter an Invoice for $1000
2)Enter Item line $500 in the first line for PA State
3) Enter Item line $300 in the second line for DE State
4) Enter $200 in the third line for Freight. There is no Ship to Location and
distribution account for this line
5) We allocate the freight to both the Item lines
6) The freight get successfully allocated $125 for first line $ 75 for second line
7) We then hit calculate tax.

Our expectation is for tax to get calculated on the first line for $500+$125 and $300+$75 for the next
line.

However tax gets calculated only for $500 and $300.

Pls advise how we can correct this situation. We have the taxable basis set as STANDARD_TB and
tax calculation set as STANDARD_TC.

Please gives on the required setup/ steps need to calculate tax on freight when we allocate freight to to different lines which have different ship to locations.

Regards,
Shashi