24 Define Tax Derivation Rules

This chapter contains the topic:

Section 24.1, "Defining Tax Derivation Rules."

24.1 Defining Tax Derivation Rules

Navigation

From Work Order/Service Billing Processing (G48), enter 29

From Work Order/Service Billing Setup (G4841), choose Table Information

From Table Information (G4843), choose Tax Derivation Table (P48127)

You define tax derivation rules to specify the tax information you want the system to apply to workfile transactions. If you do not use the Tax Derivation Table to set up tax rules, the system uses the tax information you specify in the work order master. If you have not specified tax information in the work order master, the system uses the information in the job master. If you have not specified tax information in the job master, the system uses the information in the customer master.

To set up tax derivation rules, you must specify the following key information:

Key type and table key
Effective date range
Object and subsidiary account ranges

When you accumulate costs or revise workfile transactions, the system applies the appropriate tax rules to each transaction based on the key information you specify for the rule.

The Tax Derivation Table applies only to the Service Billing system.

24.1.1 Before You Begin

Set up the tax rates and explanation codes. See theJD Edwards World Tax Reference Guide for more information about setting up tax rates and explanation codes.

To define tax derivation rules

On Tax Derivation Table

Figure 24-1 Tax Derivation Table screen

Description of ''Figure 24-1 Tax Derivation Table screen''

Complete the following fields:
- Key Type
- Table Key
Complete the following optional fields to further define the tax rule:
- Start Effective
- Ending Effective
Complete the following fields to specify the account range for the rule:
- Object From
- Object Thru
- Subsidiary From (optional)
- Subsidiary Thru (optional)
Complete the following fields to specify the tax information for the rule:
- Tax Rate
- Tax Explanation

Field	Explanation
Tax Rate (TXA1)	A code that identifies a tax or geographic area that has common tax rates and tax distribution. You must define the tax/rate area to include the tax authorities (for example, state, county, city, rapid transit district, province, and so on) and their rates. In order for the codes to be valid, you must set them up in the Tax Rate/Area file. Form-specific information You can specify a specific Tax Rate/Area or use one of the following values: CC – Use the Tax Rate/Area and Tax Explanation Code from the Business Unit WO – Use the Tax Rate/Area and Tax Explanation Code from the Work Order
Tax Expl Code (EXR1)	A user defined code (00/EX) that controls how a tax is assessed and distributed to the G/L revenue and expense accounts.

Field

Explanation

Tax Rate

(TXA1)

A code that identifies a tax or geographic area that has common tax rates and tax distribution. You must define the tax/rate area to include the tax authorities (for example, state, county, city, rapid transit district, province, and so on) and their rates. In order for the codes to be valid, you must set them up in the Tax Rate/Area file.

Form-specific information

You can specify a specific Tax Rate/Area or use one of the following values:

*CC – Use the Tax Rate/Area and Tax Explanation Code from the Business Unit

*WO – Use the Tax Rate/Area and Tax Explanation Code from the Work Order

Tax Expl Code

(EXR1)

A user defined code (00/EX) that controls how a tax is assessed and distributed to the G/L revenue and expense accounts.

24.1.2 Tax Derivation Table Listing Report

Figure 24-2 Tax Derivation Table Listing report

Description of ''Figure 24-2 Tax Derivation Table Listing report''

24.1.3 What You Should Know About

Topic	Description
Printing Tax Derivation Rules	You can print a report showing the tax derivation rules using the Tax Derivation Table Listing (P48597) on the Service Billing Table Information menu (G4843).