M3 Sales Tax Exemptions
An M3 sales tax exemption replaces the standard tax rates defined for a geographical code. Each exemption is connected to a specific combination of tax code and geographical code. Sales tax exemptions are defined in 'Geographic Code. Enter Exemptions' (CRS139) for both external sales and purchases. The use of exemptions is controlled by selection criteria specified in 'Sales Tax Exemption. Open' (TXS050).
Exemption tax rates
Exemption tax rates are defined for a geographical code based on a tax type and tax code. The exemptions are managed in 'Geographic Code. Enter Exemptions' (CRS139). The exemption tax rates refer to scenarios where the regular tax rate and tax type for a jurisdiction does not apply. When creating a new exemption, the tax type of the exemption must match the tax type of the selected tax code.
Exemption selection
The setup of the exemption selection is done for the object control parameter 'Sales tax code exemp' in 'Generic Object Control Table. Open' (CMS017). In (CMS017), a combination of control objects is defined in a priority table. The priority table can include up to ten rows where each row can include up to four control objects. Priority tables are defined per division and for a specific transaction type. Priority tables for transaction type 1 are used to define exemption rules for sales and priority tables for transaction type 2 are used to define exemption rules for purchase. Examples of control objects can be '&CUNO' (customer number), '&DCAR' (destination state), or '&FCAR' (delivery from state).
The priority table is used to define exemption selections in (TXS050) where selection values are specified for the control objects. Each exemption selection is based on one of the rows of the priority table and defined for a specific transaction type.
When entering an order, the order is checked against the defined exemption selection lines in (TXS050), starting with the line based on the priority table row with the highest priority. In the case of an exact match, the replacement tax code specified for the exemption selection automatically replaces the original tax code.
There are two types of replacement tax codes for transaction type 1-'Sales' in (TXS050): the replacement tax code and the replacement tax code for limit amount. The replacement tax code for the limit amount is retrieved when a limit amount is entered and the unit price of an item on an order line is higher than or equal to the limit amount. Otherwise, the replacement tax code is retrieved. The replacement tax code can be left blank if the exemption rule only applies to a limit amount. The tax code for the limit amount must not be entered if a limit amount is not entered. The limit amount is expressed in the local currency of the division and the unit price is converted to the local currency before comparing the amounts if the order is in a foreign currency.
General control objects
This table lists the objects you can select in (CMS017) when you define a table to use as a basis for the sales tax exemption selections in (TXS050). The objects available depend on the type of table you are defining. The 'Applicable' column states for which purpose you can use the respective control object - for external sales, purchases, or both.
| Object | Description | Selectable values in (TXS050) | Applicable |
|---|---|---|---|
| &CEXC | Customer exemption contract number exists | Alternatives: 0 = No. 1 = Yes. Select among customers with a contract number for tax exemption on 'Customer. Open' (CRS610/L). | Sales |
| &CUNO | Customer | Select among customers registered (CRS610). | Sales |
| &DCAR | Destination state |
Alternatives for sales: This is the state to which a delivery is made. The state captures manually entered customer invoices and customer orders with this state in the geographical code. Alternatives for purchases: This is the state to which a delivery is made. On the purchase side, the state captures purchase orders with this state registered for the receiving warehouse. M3 Business Engine retrieves the state automatically from the geographical code on 'Warehouse. Open' (MMS005/E). |
Sales, purchases |
| &EEXC | Equipment exemption agreement exists | Alternatives: 0 = No. 1 = Yes. Select among order lines with a serialized equipment that has a contract number for tax exemption on 'Equipment/Serialized Item. Open' (MMS240/G). This control object can be used in combination with &INAP in (CMS017). | Sales |
| &FCAR | Delivery from state |
Alternatives for sales: This is the state from which a delivery is made. The state captures manually entered customer invoices with the state of the division's geographical code and customer orders with the state in the geographical code of the delivering warehouse. M3 Business Engine retrieves the state automatically from the geographical code on (MMS005/E). Alternatives for purchases: This is the state from which a delivery is made. On the purchase side, the state captures purchase orders with this state registered for the suppliers. M3 Business Engine retrieves the state automatically from the geographical code of the supplier on 'Supplier. Open' (CRS620/E) or the postal address on 'Supplier. Connect Address' (CRS622/E) when you register the purchase order. M3 Business Engine validates the state against the base country. |
Sales, purchases |
| &GEOF |
Alternatives for sales: This is the state from which a delivery is made. The state captures manually entered customer invoices with the state of the division's geographical code and customer orders with the state in the geographical code of the delivering warehouse. M3 Business Engine retrieves the state automatically from the geographical code on (MMS005/E). Alternatives for purchases: This is the state from which a delivery is made. On the purchase side, the state captures purchase orders with this state registered for the suppliers. M3 Business Engine retrieves the state automatically from the geographical code of the supplier on (CRS620/E) or the postal address on (CRS622/E) when you register the purchase order. M3 validates the state against the base country. |
Sales, purchases | |
| &GEOO |
Alternatives for sales: This is the state from which a delivery originates. The state captures manually entered customer invoices and customer orders with this state in the geographical code of the main warehouse of the facility. Alternatives for purchases: This is the state from where a delivery originates. Also, on the purchase side, the state captures purchase orders with this state registered on the main warehouse of the facility. |
Sales, purchases | |
| &GEOT |
Alternatives for sales: This is the state to which a delivery is made. The state captures manually entered customer invoices and customer orders with this state in the geographical code. Alternatives for purchases: This is the state to which a delivery is made. On the purchase side, the state captures purchase orders with this state registered for the receiving warehouse. M3 Business Engine retrieves the state automatically from the geographical code on (MMS005/E). |
Sales, purchases | |
| &INAP | Industry application | Select among order lines connected to a specific industry application in 'Industry Application. Open' (MOS297). The industry application refers to the end usage of items or equipment. | Sales |
| &ITNO | Item | Select among items in the item master table in 'Item. Open' (MMS001). The item is captured from an order line item of a customer or purchase order. | Sales, purchases |
| &OCAR | Origin state |
Alternatives for sales: This is the state from which a delivery originates. The state captures manually entered customer invoices and customer orders with this state in the geographical code for the main warehouse of the facility. Alternatives for purchases: This is the state from where a delivery originates. Also on the purchase side, the state captures purchase orders with this state registered on the main warehouse of the facility. |
Sales, purchases |
| &SUNO | Supplier number | Select among suppliers registered in (CRS620). | Purchases |
| &TAXC | Tax code | Select among tax codes for customer or supplier. | Sales, purchases |
| &TAXI | Item tax code | Select among tax codes for item or charge. For sales, tax surcharges are entered in 'Order Line Charge. Open' (CRS275). For purchases, tax surcharges are entered as costing elements in 'Costing Element. Open' (PPS280). | Sales, purchases |
| &TECN | Tax exemption contract number | Select among tax exemption contract numbers connected to the supplier on 'Supplier Tax Number. Open' (CRS628/E). | Purchases |
| &TEDL | Delivery terms | Select among delivery terms connected to the supplier in 'Delivery Term. Open' (CRS065). This captures the delivery term on the order. | Sales, purchases |
| &TNOS | Tax registration number | Select among tax registration numbers connected to the supplier on (CRS628/E). | Purchases |
| &TXAP | Tax applicable |
For sales, select customers with one of the following 'Tax applicable'
alternatives selected on (CRS610/J) or 'Customer. Open Local Exceptions'
(MFS610/E), or for the customer order:
For purchases, select suppliers with one of the following 'Tax applicable'
alternatives selected on 'Supplier. Define Purchase & Financial'
(CRS624/F):
|
Sales, purchases |
| CTBUAR | Business area | Select among business areas in 'Business Area. Open' (CRS036). | Sales |
| IDCFI1 | User-defined field | Select among items with a specific value on (MMS001/G). | Sales, purchases |
| IDCFI2 | User-defined field | As above. | Sales, purchases |
| IDCFI3 | User-defined field | As above. | Sales, purchases |
| IDCFI4 | User-defined field | As above. | Sales, purchases |
| IDCFI5 | User-defined field | As above. | Sales, purchases |
| IICFI3 | User-defined field | As above. | Sales, purchases |
| IICFI4 | User-defined field | As above. | Sales, purchases |
| IISERS | Service code | Select among suppliers with a specific service code selected on (CRS624/F). | Purchases |
| IISUCL | Supplier group | Select among suppliers connected to a specific supplier group on (CRS624/E). | Purchases |
| MMACRF | User-defined accounting control object | Select among items with a specific accounting control object on (MMS001/E). | Sales, purchases |
| MMECCC | Consumption code - trade statistics | Select among items with a specific consumption code on (MMS001/G). | Sales, purchases |
| MMEVGR | Environment group | Select among items with a specific environment group on (MMS001/G). | Sales, purchases |
| MMGRTI | Group technology class | Select among items with a specific group technology class on (MMS001/F). | Sales, purchases |
| MMGRTS | Distribution group technology | Select among items with a specific distribution group technology on (MMS001/F). | Sales, purchases |
| MMITCL | Product group | Select among items with a specific product group on (MMS001/E). | Sales, purchases |
| MMITGR | Item group | Select among item groups in 'Item Group. Open' (CRS025). | |
| MMITTY | Item type | Select among items with a specific item type on (MMS001/E). | Sales, purchases |
| MMPRGP | Procurement group | Select among items with a specific procurement group on (MMS001/E). | Sales, purchases |
| MMSALE | Sales item | Select among items with a specific alternative selected in the 'Sales item' field on (MMS001/G). | Sales, purchases |
| MMTPCD | Item category | Select among items with a specific item category on (MMS001/G). | Sales, purchases |
| OKCFC3 | User-defined field 3 | Select among customers with a specific value entered in company-defined field 3 on (CRS610/I). | Sales |
| OKCFC4 | User-defined field 4 | Select among customers with a specific value entered in company-defined field 4 on (CRS610/I). | Sales |
| OKCFC8 | User-defined field 8 | Select among customers with a specific value entered in company-defined field 8 on (CRS610/I). | Sales |
| OKCFC9 | User-defined field 9 | Select among customers with a specific value entered in company-defined field 9 on (CRS610/I). | Sales |
| OKCUCL | Customer group | Select among customers with a specific customer group selected on (CRS610/F). | Sales |
| OKCUTP | Customer type | Select among customers with a specific customer type selected on (CRS610/E). | Sales |
| OKSDST | District | Select among customers with a specific district selected on (CRS610/F). | Sales |
| M9CSNO | Customs statistical number | Select among items with a specific customs statistical number on 'Item. Connect Facility' (MMS003/E). | Sales, purchases |