Filing period obligations are one of the tax type specific obligation types. Examples of these tax types include individual income, sales and use, corporate, withholding, and fuel taxes. These are examples of return based taxes in which the taxpayer has the responsibility to file a return for each filing period obligation. There are usually statutory considerations when configuring these obligation types. You will want to consider the following when designing your obligation for these types of taxes.
The obligation type must reference a defined tax type. The specific tax type will dictate the rules for that obligation. It should indicate that a Tax Role is required and should include the valid filing calendars for the tax type.
The obligation type should be configured to indicate that a filing period is required.
Distribution code and general ledger division for the obligation directs how the money is accounted. Different taxes may be moved to different accounts. While an individual income tax may go to the general treasury fund, a fuel tax may go the highway construction fund. The distribution code will reference an algorithm that directs how the money will be accounted for.
Adjustment profile must be defined for the obligation. Adjustment profiles contain the individual listing of adjustment types that are available for that obligation type.
An appropriate P&I control and P&I algorithms should be defined for the obligation type. Refer to P&I Rules for a P&I Control Define the Calculation for more information.
Define the default debt category priority for credits linked to obligations of this type. Refer to Debt Categories and their Priorities for more information.
Each tax type will have its own unique attributes that will change how the obligation is set up. The more details you add to your obligation type, the more robust your processing of that obligation will be. Before configuring for this obligation type you should thoroughly review the statutory considerations and make sure they are all addressed when setting up your obligation type.
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