Defining Sales and Use Tax Authorities and Codes
Use the Sales and Use Tax Authority (TAX_AUTHORITY) and Sales and Use Tax Codes (TAX_CODE) components to define tax tables.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
TAX_AUTHORITY |
Add to or update sales and use tax authorities. |
|
|
TAX_CODE |
Add or update sales and use tax codes. |
The PeopleSoft tax tables meet simple sales tax requirements, and they require you to define and maintain the following sales and use tax information:
Tax authorities, which contain individual tax rates and accounting information used to post the tax liability to a general ledger.
Tax codes, which consist of groups of tax authorities.
A tax authority is an agency empowered to set taxes. The types of taxes an authority can impose include local, state, federal, or regulatory commission taxes.
A tax code is a group of tax authorities. The percentage rate of a tax code is the sum of the percentage rates of all the tax authorities contained within that code. If a certain locality has a city tax, trade use tax, county tax, and state tax, create four tax authorities individually and then combine them into a single tax code. You can associate tax codes with a ship-to customer to enable the system to use default tax codes when you enter a ship-to customer at the bill-line level. The tax code defined for a ship-to customer appears automatically in order lines and schedules.
Each bill line in PeopleSoft Billing contains one tax code, but you can view the individual rates and amounts from each tax authority after the taxes have been calculated on the Standard Billing - Line - Tax Info page. In PeopleSoft Order Management, each order line has one tax code, but each order line can have many schedules. In addition, each schedule can have different tax codes for the same order line. In PeopleSoft Order Management, tax information appears in a summary on the Order Entry Form page.
Use the Tax Authorities page (TAX_AUTHORITY) to add to or update sales and use tax authorities.
Navigation:
Field or Control |
Description |
|---|---|
Tax Percent |
Enter the percent tax rate that the authority uses. |
Note: The PeopleSoft system uses the ChartFields in the Details group box in combination with the Percent field when the system posts the tax liability for the tax authority to a general ledger. The Account field is mandatory. Define other ChartFields to track the general ledger information in more detail, depending on your business needs.
Use the Tax Codes page (TAX_CODE) to add or update sales and use tax codes.
Navigation:
Tax Rates
You can add or delete tax authorities from a tax code in the Tax Rates group box.
Field or Control |
Description |
|---|---|
Tax Authority |
Select a valid predefined tax authority. You can add or update sales and use tax authorities on the Tax Authorities page. |
Tax Percent |
Enter the rate that each authority uses. The total percentage for the tax code (shown at the top of the page) is updated automatically when you add or delete authorities, or when you update the tax authority tables. |
Calculation Parameters
Complete the calculation parameters.
Field or Control |
Description |
|---|---|
Include VAT (include value-added tax) |
Select when the VAT amount also needs to be taxed. If you select this check box, the system adds any VAT amount to the net-extended amount before it calculates sales and use taxes. This option is relevant when there are separate tax code fields for each bill line for sales and use and VAT. If you provide separate tax codes for sales and use and VAT, it is possible to have both on a particular line, resulting in a tax-on-tax situation. In these instances, the system always calculates VAT first. The system then calculates sales and use taxes either on the net-extended amount for the line or on the sum of the net-extended amount and the VAT amount. |
Include Freight |
If selected, indicates that the freight amount must be taxed. The system adds the freight amount to the net-extended amount before calculating sales and use tax. |
Include Discount |
If selected, the system subtracts the discount amount from the net-extended amount before calculating sales and use tax. |
Include Misc Charges (include miscellaneous charges) |
If selected, indicates that the miscellaneous charges need to be taxed. The system adds the miscellaneous charges to the net-extended amount before calculating sales and use tax. |
Note: After you define the tax codes, you can assign those tax codes to ship-to customer addresses. Assigning tax codes to customer addresses ensures that the tax code appears automatically on sales orders and invoice lines that use the associated ship-to customer address.