Creating entity tax codes
Use this procedure to create and maintan tax
codes.
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Select Financials > Payables > Tax Setup > Entity Tax Codes.
Or select Financials > Receivables > Tax Setup > Entity Tax Codes
- Click Create.
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Specify this information:
- Tax Entity
- Select a tax entity.
- Tax Code
- Select the tax code of the taxable line items to use during invoice entry for customers that are assigned this default code.
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On the Main tab, specify this information:
- Accrued or Invoiced
- Select Accrued or Invoiced to indicate how the tax code will affect a taxable transaction. Accrued tax represents no increase to the transaction. Invoiced tax represents an additional charge to the transaction.
- Tax Point
- Specify the date at which you want sales
tax to be calculated.
- If you select Invoice Date, then tax is calculated when you release an invoice or invoice batch.
- If you select Shipping Date, then tax is calculated when you perform shipping feedback.
- If you select Payment Date, then tax is calculated on the date of payment.
- If you select the GL Date, then tax is recognized on the general ledger posting date.
- Tax Terms
- Specify whether to calculate the tax before or after payment terms are applied.
- Tax Identification
- Specify the tax identification number.
- Landed Cost
- Select this check box to include the tax on the item's cost.
- Allow Account Changes
- Select this check box to allow account change.
- Accounts Payable Tax Accrual Code
- Specify the accounts payable tax accrual code.
- Tax Input Account, Input Due, Output, Output Due
- Specify the ledger, entity, department,
account, project, cost center, and payor type. Note: Ledger, entity, department, account, project, cost center, and payor type must be set in GL.
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On the Main tab, in Tolerances section, specify this information:
- Taxable Tolerance Limit
- Specify the taxable tolerance limit.
- Rate Range
- Specify the rate range percentage.
- Tax Amount Tolerance Limit
- Specify the tax amount tolerance limit.
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On the Vat
Fields tab, specify this information:
- Value Added Tax Type
- Specify the VAT type whether domestic, Intra-EC, Import, or export.
- Good and Services Indicator
- Specify whether goods or services.
- Triangulation Indicator
- Specify the triangulation indicator.
- Click Save.