Understanding Tax Exemption Setup for CBS, IBS, and IS Taxes

Use the Hierarchy for Tax Exemption program (P76B011) to set up CST code and tributary class code for CBS, IBS, and IS taxes pertaining to a hierarchy based on transaction nature and other values. When you set up these details in the P76B011 program, the system stores these details in the Tax Exemptions Definition table (F76B009). When you use the P76TX002 and P76TX004 programs, or run the Sales Tax Interface (R76TX004) report, the system automatically retrieves the CST code and tributary class on the basis of transaction nature and the other combinations that exist in F76B009.

When you use the Purchase Tax Interface and Sales Tax Interface programs, the system compares the record that matches the combination of transaction nature, suffix transaction nature, the ShipTo address book number, fiscal classification, item, and the effective date in the F76B009 table. If a record is found for this combination, the system retrieves the tributary class and CST code from that record. If the system does not find a record with this combination, it looks for a combination of transaction nature, suffix transaction nature, the ShipTo address book number, fiscal classification, and the effective date, and uses values from that record. If it does not find a record to match that combination, it looks for a combination of transaction nature, suffix transaction nature, the ShipTo address book number, and the effective date and uses that value. If this also is not found, then the system narrows the search further to search for the combination of transaction nature, suffix transaction nature, and the effective date and uses that value, but when it does not find a record even for this combination, it goes further into finally searching for the combination of transaction nature and the effective date. If it fails to find a value for this combination also, for the CBS and IBS record, the system displays a message that there is no CST code and tributary class setup for the specific order line in F76B009. However, for the IS records, when the system does not find a record to the final combination of transaction nature and effective date as stated above, the system further searches for records with fiscal classification, item, and effective date, and if that is not found, it makes an attempt to finally search for a combination setup for fiscal classification and effective date. If it does not find a record to this level, it displays a message to inform you of the missing setup against the order line.