CREATE REGIME

Go to Tax Administrator Responsibility > Tax Regimes > Create

1. Create Tax Regime : CMP_REGIME

Party Name : Vision Operations
Party Type : First Party Legal Entity
Address:
Country Name : United States
Configuration for Taxes and Rules : Common Configuration with Party Overrides
Configuration for Product Exceptions
Effective Dates.
Click on Finish
2. Create Tax1 : CMP_TAX1. Compounding Precedence as 1
3. Create Tax Status STANDARD1 for Tax CMP_TAX1. Allow Tax Rate Override.
4. Create Tax Jurisdiction CMP_JURISD1 for Tax CMP_TAX1 and Geography Name NJ. Set Default Tax Jurisdiction.

5. Create Tax Rate CMP_TAX_RATE1

Rate Periods:
Percentage Rate : 10
Effective Dates
Click on Rate Details:
Set as Default Rate
Default Effective From. Click on Apply.
Click on Tax Accounts.
Ledger : Vision Operations.Click on Create
Operating Unit : Vision Operations.
Tax Recoverable/Liability. Click on Apply.
Click on Apply.
Rate Details
Tax Accounts
6. Create Tax Rule. Query the Tax CMP_TAX1
Determine Place of Supply : Ship To
Determine Tax Applicability : Applicable
Determine Taxable Basis : STANDARD_TB
Determine Tax Ammounts : STANDARD_TC
7. Go to Tax CMP_TAX1 again. Enable the Tax (Check Make Tax Available for Transactions). Click on Apply. Click Yes
8. Go Create PO. Now Tax1 is appliable.
9. Create Tax1 CMP_TAX2. Do not provide Compounding Precedence
10. Create Tax Status STANDARD2 for Tax CMP_TAX2. Allow Tax Rate Override.

11. Create Tax Jurisdiction CMP_JURISD2 for Tax CMP_TAX2 and Geography Name NJ. Set as Default Tax Jurisdiction.

12. Create Tax Rate CMP_TAX_RATE2

Rate Periods:
Percentage Rate : 5
Effective Dates
Click on Rate Details:
Set as Default Rate
Default Effective From. Click on Apply.
Click on Tax Accounts.
Ledger : Vision Operations. Click on Create
Operating Unit : Vision Operations.
Tax Recoverable/Liability. Click on Apply.
13. Go to Advanced Setup Options --> Tax Formula.
Tax Formula Code : CMP_TB_FORMULA
Name : CMP_TB_FORMULA
Formula Type : Taxable Basis
Taxable Basis Type : Prior Tax
Regime Code : CMP_REGIME
Tax : CMP_TAX2

Create Tax Formula Compounding Details

Compounding Regime Code : CMP_REGIME
Compounding Tax : CMP_TAX1
Compounding Rule : Add
Click on Apply.
14. Create Tax Rule. Query the Tax CMP_TAX2
Determine Place of Supply : Ship To
Determine Tax Applicability : Applicable
Determine Taxable Basis : CMP_TB_FORMULA
Determine Tax Ammounts : STANDARD_TC
15. Go to Tax CMP_TAX2 again. Enable the Tax (Check Make Tax Available for Transactions). Click on Apply. Click Yes
16. Create PO. Now the PO Amount is 100.
Go to Manage Tax :
Tax is 10+0.5 = 10.5
Total Amount is 100+10.5 = 110.5

17. Go to Tax Formula.

Query for CMP_TB_FORMULA
Name : CMP_TB_FORMULA
Formula Type : Taxable Basis
Taxable Basis Type : Line Amount
Regime Code : CMP_REGIME
Tax : CMP_TAX2
Click on Apply

18. Create PO. Now the PO Amount is 100.

Go to Manage Tax :
Tax is 10+5.5 = 15.5
Total Amount is 100+10+5.5 = 115.5