Defining tax codes

After your company is set up, you define tax codes and specify how you want the application to use them. These tax codes then become available for use by other Lawson applications to calculate tax. This procedure gives instructions for defining tax codes.

Define tax codes

Access Tax Code Master (TX01.1).
Select T (Tax Table Code), S (Stand Alone), M (Table Member), or C (Calculated Rate) in the Tax Type field.

Note: Calculated Rate type tax codes are a stand alone tax type restricted to AP invoices and invoices for a PO. No tax rate is allowed to be setup in the Lawson Tax application. The rate is calculated from the information provided on the invoice. Calculated tax type codes cannot be used in a tax table.
Use a Calculated Rate tax code when the tax amount on an invoice includes taxes from multiple taxing jurisdictions and the exact tax rate is unknown. Specify a tax amount on the invoice and have the rate prorated to all the taxable expense lines and/or invoice detail lines. The tax rate is calculated given the tax amount compared to the total amount of the taxable lines.

If you select T (Tax Table Code), you must set up a tax table using Tax Tables (TX01.2).
Select the Add form action.

Related Reports and Inquiries


To	Use
List the tax codes and their assigned description and tax types	Tax Code Master Listing (TX201)
List the tax code and company combinations defined in Tax Code Maintenance (TX02.1)	Tax Code Listing (TX202)