Defining the tax company

The first step in setting up the Tax application is to define your tax company.

Before you can define your company in the Tax application, you must define it in the Lawson General Ledger application. For information on defining your tax company in the General Ledger application, see the General Ledger User Guide.

To define your tax company, you must select whether to assign general ledger accounts at the company level or the tax code level. The level you select affects the depth of information you see. If you assign your general ledger accounts at the company level, your taxes are summarized, not broken down into individual posting accounts. If you assign your accounts at the tax code level, you will see detailed information on your taxes (such as invoiced and accrued tax). Planning for tax setup

This procedure gives instructions for defining your tax company.

Define the tax company

  1. Access Company (TX00.1).
  2. On the Main tab, specify the tax options for your company.
  3. Specify this information:
    Tax System

    Leave the Tax System field blank.

    (The field automatically defaults to the Lawson Tax application.)

    Use Tax Code Accounts

    Decide whether to define your general ledger accounts at the company or tax code level.

    Select Y (Yes) to assign your general ledger accounts at the tax code level. If your company is defined in the General Ledger application as requiring VAT Return Reporting, select Yes.

    Select N (No) to assign your general ledger accounts at the company level. If you select N (No) and your tax point date is set to Payment Date, input and output due accounts are required for your company.

    Taxable Amount Edit

    If the Taxable Amount Edit field is set to Yes, then the total taxable amounts on the lines are edited against the total taxable amount on the invoice header.

    Accounts Payable Tax Accrual Code

    Select the accounts payable accrual account that you previously defined by using Invoice Accrual Code (AP05.2).

    Invoice or Accrued Tax

    Specify how the tax code affects taxable transactions (invoiced or accrued).

    Tax Point

    Specify the date at which you want the application to recognize sales tax (invoice date, payment date, shipping date, or general ledger posting date).

    Tax Terms

    Specify whether the application calculates tax before or after payment terms are applied.

    Limit

    Specify the minimum taxable amount for tolerance checking.

    Rate Range

    Specify the acceptable tax rate range for tolerance checking.

    Amount

    Specify the tax tolerance amount for tolerance checking. Tolerance checking verifies a tax amount (for example, the Accounts Payable application verifies a sales tax amount on an invoice that it is preparing to pay). If the difference between the passed tax amount and the system-calculated tax amount exceeds the tax tolerance amount, an error results.

  4. On the Intrastat tab, select Intrastat reporting options.
  5. Specify this information:
    Intrastat Indicator

    Decide whether the company is subject to Intrastat reporting.

    VAT Registration Country

    Select the VAT registration country that you defined using Country Codes (IN01.1).

    VAT Registration Number

    Specify the VAT registration number.

    Branch Identification

    Specify the branch ID, if it is required for Intrastat reporting.

  6. Select the Add form action.

Related Reports and Inquiries

To Use
List the Tax companies, tax applications, general ledger accounts, landed costs, and tax point dates Tax Company Listing (TX200)
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