Tax Parameters (tctax0100m000)Use this session to define the parameters that control how your company registers and reports tax amounts. Tax determination method In the Search Sequence Tax Libraries area, you must select these details:
Note You can only select Destination Sales Tax if the Destination Sales Tax Applicable check box is selected in the COM Parameters (tccom0000s000) session. Tax conditions In the Ignore as Tax Condition area, you can select a number of criteria to be ignored when LN determines the tax code and tax country. You can select these criteria:
Introduction Date The date and time when the parameters become effective. The parameters are valid up to the effective date of a more recent parameter setting. By default, LN fills this field with the date and time at which you changed and saved the parameter settings. Description The description of the parameter set. For example, you can indicate why you change the parameters. Company The financial company for which the parameters are valid. In a multicompany structure, if this field is empty the parameters apply to all the financial companies. Standard Tax Handling Search Sequence Tax Libraries Tax Exempt Level The tax exemption setup method. Select Extended if you want to specify tax exemption certificates and exempt reasons, and if you set up destination sales tax with or without a tax provider. For details, refer to Tax exemption setup methods. Select Limited in these situations:
Search Sequence 1 The first method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. Select the method that applies to your transactions. For details, refer to Search Order Tax Defaults. If LN does not find the tax details with this method, LN continues the search according to the method selected in the Search Sequence 2 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Sequence 2 The second method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Sequence 1 field. If LN does not find the tax details with this method, LN continues the search according to the method selected in the Search Sequence 3 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Sequence 3 The third method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Sequence 2 field. If LN does not find the tax details according to this method, LN continues the search according to the method selected in the Search Sequence 4 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Sequence 4 The fourth method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Sequence 3 field. If LN does not find the tax details according to this method, LN continues the search according to the method selected in the Search Sequence 5 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Sequence 5 The fifth method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Sequence 4 field. If LN does not find the tax details according to this method, continues the search according to the method selected in the Search Sequence 6 field. If the Search Sequence 6 field is not available, LN returns an error message. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Sequence 6 The sixth method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. The sixth method is only available if you set up destination sales tax. LN uses this method if no tax code and tax country are found with the method selected in the Search Sequence 5 field. If LN does not find the tax details according to this method, LN returns an error message. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Options Use Tax Numbers of other Financial Companies If this check box is selected, and the tax country of a transaction changes, LN can replace the tax number on the transaction. LN can replace your tax number on, for example, order acknowledgements and sales invoices with the tax number of the financial company in the new tax country. If this check box is cleared, LN always retrieves your tax number from the financial company in the country of the sales office, purchase office, or service department of the order. BP Tax Number for Purchase Transactions is Mandatory If this check box is selected, LN registers always value added tax on purchase orders if the business partner's tax number is not available. If this check box is cleared, LN searches the tax code setup data to derive the tax code and calculate the tax amount, even if the business partner's tax number is not yet available. If you create a purchase order for a new business partner, you do not know the business partner's tax number until you receive the purchase invoice. To avoid tax registration for such purchase orders, you can clear this check box. Allow Simplified Triangulation between Own Entities If this check box is selected, LN uses the ICT ABC Transactions tax code for triangular trade transactions between enterprise units of your company. If you select the Use Tax Numbers of other Financial Companies check box, you can select this check box. In situations in which the simplified triangular trade procedure applies, your organization does not have to be registered for tax in the country of the customer. You can define the ICT ABC Transactions tax code in the Tax Handling (tctax0138m000) session. Tax Number Webservice URI The "internal" webservice location associated with the tax number. Fiscal ID Webservice URI The "internal" webservice location associated with the fiscal ID. Update Direct Delivery Sales Order Tax If this check box is selected, LN updates the tax data of a direct delivery sales order based on the tax data of the corresponding purchase order. If you select this check box, if you change the tax data of the purchase order, LN automatically changes the tax data of a related sales invoice. You can select this data:
You can define the ICT ABC Transactions tax code in the Tax Handling (tctax0138m000) session. Important! This field only applies to transactions within the European Union. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Update direct delivery sales order tax Tax Rounding Default value Not Applicable Note
Tax Exception Modeling Tax Exception Lookup Sequence Lookup Sequence 1 Use this field to indicate the order in which LN must retrieve tax exceptions. Lookup Sequence 2 Use this field to indicate the order in which LN must retrieve tax exceptions. Lookup Sequence 3 Use this field to indicate the order in which LN must retrieve tax exceptions. Ignore as Tax Condition Delivery Terms If this check box is selected, you cannot use the delivery terms as a criterion for tax exceptions in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Department If this check box is selected, you cannot use the department as a criterion for tax exceptions in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Item If this check box is selected, you cannot use the item as a criterion for tax exceptions in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Options Step Size for Tax Exceptions The number by which LN increases the generated line numbers in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Customer and Supplier List Italy Tax Number is Mandatory If this check box is selected, the mandatory tax number is included in the list. Fiscal ID is Mandatory If this check box is selected, the mandatory fiscal ID is included in the list. Maximum Number of Lines per File Specify an upper limit for the number of customers and suppliers on the list.
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