Understanding Tax Rate Area Information
Use the Tax Rate/Area Information program (P1508) to set up and work with the areas, rates, and effective dates for current and future taxes. Each tax area can have its taxes assessed by different tax authorities for different purposes and rates. The system uses this information and a tax explanation code to calculate the tax amounts for billings when tax processing is in effect. As tax rates change, you can update the tax rate and area information. The system stores tax rate and area information in the Tax Areas table (F4008).
The system does not check for duplicate tax rate and area information. Consequently, you can set up different tax rates and effective date ranges for the same tax rate and area. The system checks for overlapping effective date ranges. When an overlap exists, the system generates an error.
When you process taxes, note the following:
The Tax Suppress field in the Property Management Constants table (F1510B) controls whether tax processing is in effect and whether the tax-related fields are displayed.
Processing options for specific billing programs also control tax processing.
When tax processing is in effect, you can assign the necessary tax information for a billing in the Tax Ex Code (tax explanation code), Tax Rate Area, and Serv/Tax Date (service/tax date) fields on the Manual Billing Revisions form.
The service and tax date must occur within the effective date range that is defined for the tax rate and area.
The system automatically supplies the tax rate area for a tenant from either the Customer Master by Line of Business table (F03012) or Supplier Master table (F0401).
You can also manually assign a different tax rate area for a particular billing.
In addition to the tax explanation codes that are used in the JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne Accounts Receivable systems, the Real Estate Management system uses the tax explanation code AR. The system calculates taxes for tax explanation code AR in the same manner that it does for S, with these differences:
The system creates a separate pay item for each tax rate that is specified.
The system uses the GL offset from the tax rate area and either PM/RC AAIs (for invoices) or RM/PC AAIs (for vouchers) to locate the tax account and tax offset account to use.
For example, you want to charge a county tax of 2 percent and a city tax of 3 percent on an invoice with a taxable amount of 1,000. Using the code AR and the appropriate tax rate area, the system automatically creates two pay items for the tax information.
The resulting invoice has these pay items:
1,000 for the invoice.
20 for the county tax.
30 for the city tax.
If you use the tax explanation code S, the resulting invoice has only one pay item for 1,000 with a tax amount of 50.
See "Understanding Tax Explanation Codes" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.