To use a tax provider

Use the North American tax-handling sessions to implement the interface between LN and a tax provider. LN supports the tax-provider application Vertex "O" series for Sales and Use Tax.

The tax provider computes the tax amounts and provides tax registers for auditing and tax reporting of transactions with ship-to addresses in the countries that you enter in the Countries for Destination Sales Tax (tctax6103m000) session.

When you generate the final invoices in Invoicing, the tax provider tax register is updated automatically. The tax amounts are calculated per invoice line rather than per invoice. In addition, the tax provider calculates the tax amounts for invoices created manually in the Manual Sales Invoice Data (cisli2120s000) session.

If you activate the tax-provider interface, the following LN functionality is not applied to those transactions:

  • Tax exemption processing.
  • Multilevel tax processing.
  • Tax-rate selection and tax computation. These functions are carried out by the tax provider.

For transactions with ship-to addresses in countries other than the countries entered in the Countries for Destination Sales Tax (tctax6103m000) session, LN computes the tax in the normal way.

To start using a tax provider

If you already use LN, you can start using a tax provider:

  • At month end after closing your financial period
  • Before processing begins for the current period

However, it is recommended that you start using a tax provider at quarter end to facilitate tax reporting.

Note

If you cannot start using the tax provider at quarter end, you must consult the following tax registers when you file your quarterly reports:

  • The LN tax registers.
  • The tax-provider tax registers.

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