Setting up the tax-provider interface

To prepare the tax-provider interface implementation:

1. Use the Ländersatz (tccom1680m000) session to specify a country set for the countries for which the tax provider must calculate the tax amounts and keep a sales-tax register. For orders with addresses in other countries, LN calculates the tax amounts.
2. Verify that existing addresses in the countries specified in step 1, have the format that is required by the tax provider. The city, state/province, and ZIP/Postal code for US and Canadian addresses must be specified in the correct address fields.
3. Install the tax provider using the instructions provided by the tax-provider vendor.
4. Close the fiscal period using the Perioden abschließen (tfgld1206m000) session.

To implement the tax provider interface:

1. Select the Tax Provider verwenden check box in the Parameter Tax Provider (Am.) (tctax6100m000) session.
2. Select the tax provider in the Parameter Tax Provider (Am.) (tctax6100m000) session. The tax provider must be Vertex O Series for Sales and Use Tax.
3. Specify the countries to which the tax provider applies, in the Ländersatz (tccom1680m000) session. If the business partner's address is located in one of these countries, LN does not calculate the tax amounts but passes the tax data on to the tax provider. For addresses in other countries, LN calculates the tax amounts.
4. Verify and assign GEO codes to existing address data by using the Adressprüfprogramm für zuständige Steuerbehörden (Am.) (tctax6210m000) session.
5. Evaluate the GEO codes and redefine the codes if necessary.
   • If you use Vertex, perhaps you need to change the default selection of the Innerhalb der Ortsgrenzen check box in the Adressen (tccom4130s000) session.
   • If more than one jurisdiction corresponds with the address data, on the appropriate menu select Zuständigkeit to start the GEO-Codes nach Adressdaten (tctax6105m000) session.
6. Enter your company, business partners, and product-related data in the tax provider.
7. Define the valid product categories in the Produktkategorien (tctax6101m000) session. The product categories that you define must match the taxability drivers defined in the tax provider.
8. Specify the matrix of item groups, items, contract types, service types, and ledger account numbers by product category, in the Steuermatrix für Produktklassen (Am.) (tctax6102m000) session.

After you have implemented the tax-provider interface, consider making these adjustments:

• Simplify the tax-code structure

  If you have already used LN without a tax provider, consider to perform a reevaluation of your current tax structure in Finanzwesen. The tax provider does not require the complex tax handling implemented in LN for non-tax-provider users.

  If you use a tax provider, LN uses the tax codes to determine the ledger accounts to which the various amounts are posted. LN sets all tax codes to singular tax during implementation of the tax-provider interface. The tax provider determines the tax rates and the jurisdictions.

• Use separate tax codes for financial transactions

  You must enter the tax amounts of financial transactions manually in the tax provider prior to filing your quarterly reports. This is because the tax amounts of financial transactions are not written to the tax-provider tax register. Use the Berechnungsprogramm Tax Provider (Am.) (tctax6212m000) session to enter these tax amounts. You can define separate tax codes for financial transactions to facilitate tracking of the tax amounts of financial transactions.