Taxation

Line Level Location in SuiteTax

Starting from 2026.1, nexus determination in SuiteTax will now consider the line-level location on an item, if available. Other factors such as shipping address and entity tax registration will also be considered. This is supported by most transaction types in NetSuite.

Previously, only the header location was used in the nexus determination. Now, specifying a location at the line level on each item provides more accurate tax calculations when items are shipped from multiple locations.

When you select a location at the line level, the system validates the nexus for each item line as it creates or updates transactions. All item lines must share the same nexus. Otherwise, you must create separate transactions. You can select a location from the dropdown list under Location subtab. If your location isn't on the list, you can add it and then select it.

For more information, see Single Nexus Validation on Transactions.

Tax on Term Discounts in SuiteTax for Sales Transactions

Starting from 2026.1, you can automate tax adjustments when you apply term discounts on sales transactions. Previously, when customers paid invoices early and qualified for a term discount, you adjusted only the discount, and any related tax adjustment required manual calculation and entry.

With the new Tax on Term Discounts feature, the system automatically generates credit memos for both the discount and its associated tax amount. You can choose to create adjustment transactions for the discount alone or include the tax adjustment in the same transaction, depending on your configuration preferences.

To use this feature, ensure to:

• Enable the Create Adjustment Transactions for Term Discounts accounting preference.

• Enable the Include Tax for Term Discounts preference at the nexus level if you want to adjust the tax with the discount amount.

• Grant the edit-level permission for the Tax details tab and the Create Credit Memo Transaction permission to any role that needs to record payments with term discounts.