Using a tax provider

Use the tax-handling sessions to implement the interface between LN and a tax provider. For Sales and Use Tax, Vertex O Series is supported.

The tax provider calculates the tax amounts and provides tax registers for auditing and tax reporting of transactions with addresses in the countries that belong to the country set that you specify in the Country Set (tccom1680m000) 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 calculation

These functions are carried out by the tax provider. For transactions with addresses in countries other than the countries specified in the country set selected in the Tax Provider Parameters (tctax6100m000) session, tax is calculated in the normal way.

To start using a tax provider

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

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

However, we recommend that you start using a tax provider at quarter end to facilitate tax reporting.