Tax registration prerequisites

For all types of tax, you must define data in the following sessions:

• In the Implemented Software Components (tccom0100s000) session, select the Tax check box.
• In the Countries (tcmcs0510m000) session, define the Countries.
• In the States/Provinces (tcmcs1143m000) session, define the states.
• In the Addresses (tccom4130s000) session, specify the state for each address in the State/Province field. LN requires this information for the correct registration of CST and LST.
• In the Cities by Country (tccom4539m000) session, define the cities in each state. You must define the cities that levy octroi tax.
• In the Business Partner (tccom4100s000) session, define business partners with only the invoice-from and the pay-to roles for the authorities to which you pay the tax. You must select the Collection Office check box.
• In the Registration Numbers By Financial Company (tctax9140m00l) session, set up the tax registration numbers of your own company. For details, refer to To set up tax registration numbers for your own company
• In the Registration Numbers by Business Partner (tctax4100m000) session, set up the tax registration numbers for the business partners
• In the Invoice Series by Registration Number (cisli1501m000) session, set up sequential invoice numbering for each tax registration number. For details, refer to Sequential invoice numbering by (own) tax registration number
• In Financials, define the ledger accounts and dimensions to which LN must post the tax amounts.
• Ensure that in all situations, the tax is calculated on transaction line level. For details, refer to Level of tax calculation.
• Clear the Destination Sales Tax Applicable check box in the COM Parameters (tccom0000s000) session.
• The tax authorities in each state, in the Tax Authorities (tcmcs1137m000) session. Using tax authorities is optional. You can group the data on tax reports by tax authority.
• Optionally, you can group the tax authorities in tax authority groups which you can define in the Tax Authority Groups (tcmcs1140m000) session.
• If tax exemptions apply, define the reasons for tax exemption, in the Reasons (tcmcs0105m000) session.
• In the CMG Parameters (tfcmg0100s000) session, clear the Adjust Tax for Deductions check box.