Assigning Tax Codes to Your Company

If you selected Yes in the Use Tax Code Accounts field on Company (TX00.1), then you will need to complete this procedure. You will decide how and when taxes are applied and which general ledger accounts will be used for posting. This procedure describes how to assign tax codes to your company.

To assign tax codes to a company

  1. Access Tax Code Maintenance (TX02.1).
    Note: Only use Tax Code Maintenance (TX02.1) if you selected Yes in the Use Tax Code Accounts field on Company (TX00.1).
  2. Select the Main tab to define tax codes for your company. Use the following guidelines to enter field values:
    Invoice, Accrued Tax

    Select how the tax code will affect a taxable transaction. An invoiced tax represents an increase to the transaction's amount. An accrued tax has no effect on the transaction's amount.

    Tax Point

    Select the date at which you want the system to calculate sales tax.

    • If you select Invoice Date, tax is calculated when you release an invoice or invoice batch in the Billing application.

    • If you select Shipping Date, tax is calculated when you perform shipping feedback in the Warehouse application.

    • If you select Payment Date, tax is calculated on the date of payment.

    Tax Terms

    Select whether the system is to calculate tax before or after payment terms are applied.

    Tax Identification

    Type the company's tax identification or registration number for the tax authority.

    Input Due Account, Input Account

    The Input Due Account is a temporary general ledger account used to post the tax amount to when the tax point date is set to Payment Date.

    When the company pays the vendor, the tax posting is moved from this account to the Input Account. Input taxes are paid by the company through the Accounts Payable application.

  3. Select the VAT Fields tab to assign VAT parameters to your tax code and company. For more information on VAT parameters, see the Tax User Guide.

Related Reports and Inquiries

To Use
List tax code and company combinations. The report shows tax codes, general ledger accounts, and accrued or invoiced taxes Tax Code Listing (TX202)