Administering Tax Rate

The Tax Rate Maintenance page displays the tax codes and tax rates per Accounting Entity.
Note: This is applicable only for M3 integrated customers.

You must be logged on to the Infor CRM Administration Client and have the appropriate permissions to perform this task.

  1. Select Master Explorer > System Administration > Configuration and Users > Tax Rate Maintenance from the Navigation bar. The Tax Rate Maintenance list page is displayed.
  2. Select the required back office on the Back Office field.
  3. Select the required accounting entity for the selected back office on the Accounting Entity field.
  4. Click New in the details page menu bar, specify the details related to tax, and click Save to add tax code.
    Note: Select the required record in the grid and modify as per the requirement and click Save
  5. Specify these information:
    Tax Code
    The is the tax code that can be used to invoice a customer for sold products in a sales order. Tax code must be unique within the same validity period. Multiple records with the same Tax Code are allowed provided that the validity periods do not overlap.

    Examples:

    1. This is allowed:
      • Tax Code A1 with Start Date of January 1, 2022 and Expiry Date of December 31, 2022
      • Tax Code A1 with Start Date of January 1, 2023 and Expiry Date of December 31, 9999
    2. This is not allowed:
      • Tax Code A1 with Start Date of January 1, 2022 and Expiry Date of December 31, 2022
      • Tax Code A1 with Start Date of June 1, 2022 and Expiry Date of December 31, 9999
    Rate
    The tax rate for the specified tax code. If entered value is less than 1, then the rate is used as Tax Rate value in the tax calculation. If entered value is more than or equal to 1, then value is divided by 100. It is used as Tax Rate value in the tax calculation.
    Start Date
    The validity start date for the record.
    Expiry Date
    The validity end date for the record.
    Note: 

    When adding line items to a Sales Order, the Tax Amount displayed in the Order Summary window is calculated based on tax-related fields in the Accounting view of the Account associated to the Sales Order using the formula:

    • If Tax Applicable field in the Accounting view of Account details page is set to Yes and VAT Included is not selected: Tax Amount for the line item is calculated as Amount for the line item multiplied by Tax Rate.
    • If Tax Applicable field in the Accounting view of Account details page is set to Yes and VAT Included is selected: Tax Amount for the line item is calculated as:
      • Get Divisor value using formula: (100 + Tax Rate) / 100
      • Get Pre-tax Line Value using formula: Amount for the line item divided by the Divisor value
      • Calculate Tax Amount using formula: Amount for the line item minus Pre-tax Line Value
    • If Tax Applicable field in the Accounting view of Account details page is set to No: Tax Amount for the line item is zero.
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