To set up a group tax code

If more than one tax code must be linked to the transactions, you must set up a group tax code. For example, you can use a group tax code to link a tax code for Sales tax, and a tax code for Excise to a single transaction.

  1. Define a group tax code

    In the Tax Codes by Country (tcmcs0136s000) session, define a tax code and select the Group Tax check box to indicate that the tax code is a group tax code. For a group tax code, you cannot enter other tax details.

  2. Approve the group tax code

    Before you can link the tax codes to a group tax code, in the Tax Codes by Country (tcmcs0136s000) session, select the Approved check box for the group tax code.

  3. Add the tax codes to the group tax code

    In the Tax Codes by Country (tcmcs0536m000) session, on the appropriate menu, click Tax Codes by Group. The Tax Codes by Group Tax Code (tctax0139m000) session starts.

    In the Tax Codes by Group Tax Code (tctax0139m000) session, click New to add the tax codes to the group tax code.

    You must link one tax code of the VAT type. The tax codes must have the Approved status. If you click the browse arrow of the Tax Code field, LN lists only the tax codes that you can add to the group tax code.

    A group tax code can contain only one tax code for which the kinds of tax is VAT.

  4. Set up default group tax codes for your business partners

    Link the group tax code to the tax classification in the Tax Exceptions by Country (tctax1100m000) session.

    You can select a group tax code only if you enter the following details:

    • The Order Origin must be Purchase Invoice.
    • The Tax Classification field must be filled.

    If you save the data, LN checks whether the group tax code contains tax codes of the kinds of tax that corresponds to the selected tax classification.

    In the Tax Parameters (tctax0100m000) session, select Exceptions by Country or Exceptions by Country Set, as applicable, in the Search Sequence 1 field.

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