Responsibility: Tax Manager
Navigation: Tax Configuration > Tax Regimes
Step 1: Creation of Tax Regime
Enter the name of the country and click on go will display the tax regimes existing in the system.
To create a new tax regime click on create.
Enter the following:
1. Unique name for the tax regime code. The name can be same as tax regime code.
2. Enter Country name from LOV
3. Disable tax recovery: If this is enabled, then you would find 2 lines in the distribution level.
4. Specify Rounding rule
5. Specify Tax precision
6. Enable allow tax rounding override
7. Enable Allow multiple jurisdiction
8. Allow tax inclusion: Choose standard non-inclusive handling
Click on Continue
In the following screen assign the OU to which the tax regime is applicable to.
Click Finish to complete the set up of tax regime.
Step2: Creation of Taxes
To use the wizard regime to rate query the tax regime defined. To the right end you will find the link to regime to rate flow.
Click on that link
To create tax click on the link against the tax regime (under create tax).
Enter the following under main information:
1. Configuration Owner (This is the owner of tax): GAP US OU
2. Tax and Tax Name: Enter a unique value
3. Tax Type: Choose Sales or Sales Tax from Lov
4. Enter effective from date
5. Geography type: Country
6. Parent Geography Type: Country
7. Parent Geography Name: United States
8. Choose tax currency
9. Choose rounding rule.
10. Enter tax precision
Enter the following under control and defaults:
1. Allow tax inclusion: Select Standard Non inclusive handling
2. Enable Allow tax rounding override
3. Enable Allow override of calculate tax lines
4. Allow entry of Manual tax lines
5. Allow multiple jurisdictions
6. Allow mass creation of jurisdictions
Note:
Point 3 & 4 above are required for manual allocation of tax lines
Click on Tax accounts
Enter the ledger Name and click on Create Button.
Note:
Tax accounts can be entered in 3 locations.
Taxes
Tax jurisdiction
Tax rate Code.
Enter the tax recoverable / liability account and click on Apply.
Continue to click on apply on every page until we come back to the below screen
Step 3: Creation of Tax status
Click on link against the tax under create tax status.
Enter the following
1. Enter unique tax status code and name.
2. Enable set as default tax status
3. Enable Allow tax rate override. This is required for manual tax allocation.
Click on Apply.
Step 4: Create Tax rate code
Click on the drop down link (+) against the tax. This will display the tax status.
Click on the drop down link (+) against the tax status. There is a link to create tax rate as shown below
Click on the link to create tax rate.
Enter the following
1. Enter Tax rate code
Rate Periods
1. Enter rate and the effective date from
Click on rate details
Enter the following
1. Enter tax rate name and description
2. Check internet expenses enabled: This check box is visible only during definition of tax rate code
3. Enable set as default rate and enters effective date from.
Note: Only one tax rate should be defined as default.
4. Enable Allow Ad-hoc rate: This is necessary for manually allocation of tax to item lines
5. Set Adjustment for ad-hoc amounts to taxable basis.
Click on Apply
Click on link to tax accounts to specify tax account the specific tax rate code.
The tax account definition is similar to the steps under step 2.
Step 5: Define tax jurisdiction.
A jurisdiction is the geographical area to which the tax regime is applicable to
Click on Create and enter values as shown below.
Not required to enter tax accounts.
Click on apply.
Step 6: Define Tax rules
Against each rule name and under the column set default there is an icon to update. Click on that icon and set the value as shown in the screen. The values are available as LOV.
The last step is to query the taxes defined and enable a check box to activate the same to be available for transactions
Click on Update icon for the specific tax
Enable Make Tax Available for Transaction.
Click on Apply
This completes the process to define a tax regime to Rate
The next step is to change the event class setting based on the document provided.
Navigation: Tax Configuration > Tax Regimes
Step 1: Creation of Tax Regime
Enter the name of the country and click on go will display the tax regimes existing in the system.
To create a new tax regime click on create.
Enter the following:
1. Unique name for the tax regime code. The name can be same as tax regime code.
2. Enter Country name from LOV
3. Disable tax recovery: If this is enabled, then you would find 2 lines in the distribution level.
4. Specify Rounding rule
5. Specify Tax precision
6. Enable allow tax rounding override
7. Enable Allow multiple jurisdiction
8. Allow tax inclusion: Choose standard non-inclusive handling
Click on Continue
In the following screen assign the OU to which the tax regime is applicable to.
Click Finish to complete the set up of tax regime.
Step2: Creation of Taxes
To use the wizard regime to rate query the tax regime defined. To the right end you will find the link to regime to rate flow.
Click on that link
To create tax click on the link against the tax regime (under create tax).
Enter the following under main information:
1. Configuration Owner (This is the owner of tax): GAP US OU
2. Tax and Tax Name: Enter a unique value
3. Tax Type: Choose Sales or Sales Tax from Lov
4. Enter effective from date
5. Geography type: Country
6. Parent Geography Type: Country
7. Parent Geography Name: United States
8. Choose tax currency
9. Choose rounding rule.
10. Enter tax precision
Enter the following under control and defaults:
1. Allow tax inclusion: Select Standard Non inclusive handling
2. Enable Allow tax rounding override
3. Enable Allow override of calculate tax lines
4. Allow entry of Manual tax lines
5. Allow multiple jurisdictions
6. Allow mass creation of jurisdictions
Note:
Point 3 & 4 above are required for manual allocation of tax lines
Click on Tax accounts
Enter the ledger Name and click on Create Button.
Note:
Tax accounts can be entered in 3 locations.
Taxes
Tax jurisdiction
Tax rate Code.
Enter the tax recoverable / liability account and click on Apply.
Continue to click on apply on every page until we come back to the below screen
Step 3: Creation of Tax status
Click on link against the tax under create tax status.
Enter the following
1. Enter unique tax status code and name.
2. Enable set as default tax status
3. Enable Allow tax rate override. This is required for manual tax allocation.
Click on Apply.
Step 4: Create Tax rate code
Click on the drop down link (+) against the tax. This will display the tax status.
Click on the drop down link (+) against the tax status. There is a link to create tax rate as shown below
Click on the link to create tax rate.
Enter the following
1. Enter Tax rate code
Rate Periods
1. Enter rate and the effective date from
Click on rate details
Enter the following
1. Enter tax rate name and description
2. Check internet expenses enabled: This check box is visible only during definition of tax rate code
3. Enable set as default rate and enters effective date from.
Note: Only one tax rate should be defined as default.
4. Enable Allow Ad-hoc rate: This is necessary for manually allocation of tax to item lines
5. Set Adjustment for ad-hoc amounts to taxable basis.
Click on Apply
Click on link to tax accounts to specify tax account the specific tax rate code.
The tax account definition is similar to the steps under step 2.
Step 5: Define tax jurisdiction.
A jurisdiction is the geographical area to which the tax regime is applicable to
Click on Create and enter values as shown below.
Not required to enter tax accounts.
Click on apply.
Step 6: Define Tax rules
Against each rule name and under the column set default there is an icon to update. Click on that icon and set the value as shown in the screen. The values are available as LOV.
The last step is to query the taxes defined and enable a check box to activate the same to be available for transactions
Click on Update icon for the specific tax
Enable Make Tax Available for Transaction.
Click on Apply
This completes the process to define a tax regime to Rate
The next step is to change the event class setting based on the document provided.
