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

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

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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