Setting up tax defaulting

To set up the tax defaulting functionality, perform these steps:

  1. Define a state set code along with the description in the State Set (tccom1685m000) session. .
  2. Specify set of states linked to a state set in the States by State Set (tccom1186m000) session.
  3. Access the Tax Parameters (tctax0100m000) session, specify this information:
    • Extended Tax Configuration
    • Jurisdiction at State/Province Level
    • Goods and Service Categories
  4. Access the Tax Parameters by Country (tctax0101m000) session, specify this information:
    • Jurisdiction at State/Province Level
    • Interstate / Intrastate Tax Codes
    • Goods Acquisition Lookup Sequence 1, 2, 3
    • Goods Supply Lookup Sequence 1, 2, 3
    • Service Acquisition Lookup Sequence 1, 2, 3
    • Service Supply Lookup Sequence 1, 2, 3, 4, 5
  5. Define the Country Set and Goods and Service Category in the Goods and Service Categories (tctax0122m000) session.
  6. Access the Goods and Service Category Mapping (tctax0123m000) session, specify this information:
    • Goods and Service Category
    • Goods and Service Category Type
    • Mapping Attribute
    • Mapping Attribute Company
    • Effective Date
    • Expiry Date
  7. Specify the ranges for HS codes, service types, service contracts, items and item groups in the Goods and Service Category Mapping (tctax0123m000) session.
  8. Define these required codes in the Tax Handling (tctax0138m000) session:
    • Freight Tax Codes
    • Goods Tax Codes
    • Service Tax Codes
    • Acquisition
    • Supply
    Note: This session is enabled only if the Extended Tax Configuration is set to Active in the Tax Parameters (tctax0100m000) session.
  9. Define the default standard tax codes for different scenarios in the Tax Handling (tctax0135m000) session. note: This session is enabled only if the Extended Tax Configuration is set to Active in the Tax Parameters (tctax0100m000) session.
  10. Set up exceptions to the standard tax defaulting in the Tax Exceptions by Country (tctax1100m000) session.
  11. Define tax defaulting for a set of countries having similar tax defaulting mechanism in the Tax Exceptions by Country Set (tctax1101m000) session.