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)

Configuration Owner: Global Configuration Owner

Tax Source: Create a new tax (defaults)

Tax: TESTTAX1

Tax Name: Test Tax1

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

-- Tax Currency: USD (defaults)

-- Minimum Accountable Unit: 0.01 (defaults)
--- Rounding Rule: Nearest (defaults)
-- Tax Precision: 2 (defaults)
-- Exchange Rate Type: Blank

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 Rates

Select 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 enable
this 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

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