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Requirements
Creating Tax Manager Responsibility
Attaching to user
Assigning all profile options
HR: BUSINESS GROUP
HR: SECURITY PROFILE
MO: SECURITY PROFILE
GL LEDGER NAME
MO: OPERATING UNIT
. Creating party tax profile
Creating a Tax Regime
Creating a Tax
Creating status
Create a Tax Rates
Creating a Tax Jurisdiction
Creating Tax Accounts
Creating Tax Rules
Making tax Available For Transactions
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DEFINING TAX REGIME
NAV:-Tax Configuration> Tax Regimes
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Click > Create
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Tax Regime Code: TESTREGIME1
Name: Test Regime1
Regime Level: Country
Country Name: United States
Parent Regime Code: Blank
Effective From: 01-JAN-1950
Effective To: Leave Blank
Used to group Regimes: Unchecked
Enter the values in the Main Information and
Click on Show Controls and Defaults
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Expand the Controls and Defaults region
Allow Tax Recovery: Checked
Allow Override and Entry of Inclusive Tax Lines: Unchecked
Allow Tax Exemptions: Checked
Allow Tax Exceptions: Checked
Tax Currency: INR
Minimum Accountable Unit: 0.01
Rounding Rule: Nearest
Tax Precision: 2 (default)
SELECT CONTINUE
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Party Name : Vision Operations( Note : Select the
Operating unit owning tax content Party type).
Configuration for Taxes & Rules :Common configuration
with party Overrides.
Configuration for Product Exception : Party-Specific
Configuration
Effective From :
Effective TO : Leave Blank
Click on Button Finish
We will get the message Tax Regime was Successfully
created
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2.DEFINING TAXES
NAV:-Tax Configuration> Taxes
Or
SELECT TAXES
Select create
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Tax Regime Code: TESTREGIME1 (defaults) -- Tax Currency: USD (defaults)
Configuration Owner: Global Configuration Owner -- Minimum Accountable Unit: 0.01 (defaults)
Tax Source: Create a new tax (defaults) --- Rounding Rule: Nearest (defaults)
Tax: TESTTAX1 -- Tax Precision: 2 (defaults)
Tax Name: Test Tax1 -- Exchange Rate Type: Blank
Tax Type: SALES
Effective From: 01-JAN-1950 (defaults)
Effective To: Leave blank
Geography Type: STATE
Parent Geography Type: COUNTRY
Parent Geography Name: United States
Select +Show Controls and Default
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Enter the details as per information mentioned below
Allow Override and Entry of Inclusive Tax Lines: Unchecked
Allow Tax Rounding Override: Unchecked
Allow Override for Calculated Tax Lines: Checked
Allow Entry of Manual Tax Lines: Checked
Use Legal Registration Number: Unchecked
Allow Duplicate Tax Registration Numbers: Unchecked
Allow Multiple Jurisdictions: Unchecked
Tax Accounts Creation Method: Create Tax Accounts (defaults)
Allow Tax Exceptions: Checked (defaults)
Allow Tax Exemptions: Checked (defaults)
Tax Exemptions Creation Method: Create Tax Exemptions (defaults)
Allow Tax Recovery: Unchecked
After filling all the required fields Click the button Apply we will receive the message Tax has been successfully created
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3. DEFINING STATUS
Click on icon Create Tax Status
Enter the Following:
Tax Status Code : Tax Status1
Click on button : Apply
Check as Default Tax Status : Checked
Default Status Effective From : 01-Jan-1950
Click on Button : Apply
We will get the message The Tax Status was successfully created
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4. Creating Tax RatesSelect Tax Rates
Click Create
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Tax Regime Code: TESTREGIME1 (defaults)
Configuration Owner: Global Configuration Owner (defaults)
Tax: TESTTAX1 (defaults)
Tax Status Code: TESTSTATUS1 (defaults)
Tax Jurisdiction Code: Blank
Tax Rate Code: TESTRATE1
Rate Type: Percentage (defaults)
Percentage Rate: 10
Effective From: 01-JAN-1950 (defaults)
Effective From: Leave blank
Select Rate Details
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Tax Rate Name: Test Sales Tax Rate1
Tax Rate Description: Test Sales Tax Rate1
Set as Default Rate: Checked
Default Effective From: 01-JAN-1950
Default Effective To: Leave blank
Allow Tax Exemptions: Checked (defaults)
Allow Tax Exceptions: Checked (defaults)
Internet Expenses Enabled : Checked
Click on the button Apply to return to the Create Tax Rate page.
Click on the button Apply to return to the Regime to Rate Flow page
You will get the message The Tax Rate has been successfully created.
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5.Creating Tax Jurisdiction
SELECT TAX JURISDICTION
SELECT CREATE
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Tax Jurisdiction Code: TESTJUR1
Tax Jurisdiction Name: Test Tax Jurisdiction1
Tax Regime Code: TESTREGIME1
Tax: TESTTAX1
Geography Type: STATE (pick from list!)
Effective From: 01-JAN-1950
Effective To: Leave Blank
Geography Name: CA
Precedence Level: 300 (defaults)
Collecting Tax Authority: Blank
Reporting Tax Authority: Blank
Set as default Tax Jurisdiction: Yes (defaults)
Default Effective From: 01-JAN-1950
Default Effective To: Leave blank
Click on the button Apply to return to the Regime to Rate Flow page
You will get the message The tax jurisdiction was successfully created.
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6. Creating Tax Accounts
Select Taxes
Search for the Taxes that we created just now using the following filter criteria:
Country Name: United States
Tax Regime Code: TESTREGIME1
Tax: TESTTAX1
Click on the button Go. Then click on icon Update.
Click on button Tax Accounts.
Enter the Ledger as Vision Operations (USA)
Click on button Create
Enter the Tax Account details based on following information:
Operating Unit : Vision Operations
Tax Expense: 01-210-7710-0000-000
Tax Recoverable/Liability: 01-000-2220-0000-000
Click on button Apply and return back to Tax Accounts page.
Click the button Apply, to return to the Update Tax page.
Click the button Apply, to return to the Taxes page.
You will get the message The tax was successfully updated.
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7. CREATING TAX RULES
SELECT TAX RULES
Configuration Owner: Global Configuration Owner
Tax Regime Code: TESTREGIME1
Tax: TESTTAX1
Click on button Go. Then click on Expand All.
Set the following values corresponding to the Rule Types:
Determine Place of Supply: Ship To
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Determine Tax Applicability: Applicable
Determine Tax Registration: Bill From Party
Determine Taxable Basis: STANDARD_TB
Calculate Tax Amounts: STANDARD_TC
8.Making Tax Available for Transactions
SELECT TAXES Select the Tax created based on the following filter criteria:
Country Name: United States
Tax Regime Code: TESTREGIME1
Tax: TESTTAX1
Click on button Go. Then click on icon Update on the TESTTAX1 row.
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Check the box Make Tax Available for Transactions
Click on button Apply.
You will get the message This tax does not have an exchange rate type. Are you sure you want to enablethis tax? having options Yes and No. Click on Yes
You will get the message The tax was successfully updated.
Test your Tax Setup by creating an Invoice in Payables /Receivables