Tax Management in M3 Business Engine

This document introduces the concept of tax management in M3 Business Engine and includes links to all available documentation to support this concept.

Tax management in M3 Business Engine is controlled by the setting 'Tax method' in 'Company. Connect Division' (MNS100). The tax method is set per division and controls how tax is calculated on financial transactions. The following tax methods are available:

0) No tax is calculated

1) VAT/GST

2) M3 sales tax

3) Sales tax interface

4) VAT is calculated on purchases, with tax calculated using the sales tax integration on sales

5) M3 sales tax is calculated on purchases, with tax calculated using the sales tax integration on sales

For country versions US and Canada, M3 supports integration with two third-party sales tax applications, AvaTax and Vertex. See Sales Tax Management in M3 Business Engine.

Tax method 4 is a combination of Tax method 1 for supplier invoices and Tax method 3 for customer invoices. See VAT Management in M3 Business Engine and Sales Tax Management in M3 Business Engine for detailed information about the functionality.

Tax method 5 (Purchase M3 Sales tax/Sales Vertex) is a combination of Tax method 2 for supplier invoices and Tax method 3 for customer invoices. See Sales Tax Management in M3 Business Engine for detailed information about the functionality.

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