Understanding the Sales Tax Interface
Use the Sales Tax Interface program (P76TX004) to enter the charges and to override the existing charges pertaining to a sales order, such as custom duty and freight, and store them in the Tax Calculation Amounts table (F76TX002). With this, the system includes these charges and the discount based on the price adjustments specified for the sales order in the Price Adjustment Ledger File (F4074), in the taxable base for the purpose of tax calculation. In addition, this program retrieves the CST code and the tributary class for CBS, IBS, and IS taxes for the system to calculate the taxes accurately after taking into consideration the setup in F76B009.
To apply tax exemptions for multiple sales orders at a time, run the Bulkupdate - Sales Tax Interface (R76TX004). Before you run this report, you must use the Hierarchy for Tax Exemption program (P76B011) to set up CST code and tributary class code for CBS, IBS, and IS tax types pertaining to a hierarchy based on transaction nature, suffix transaction nature, the ShipTo address book number, fiscal classification, item, and the effective date.
See Understanding Tax Exemption Setup for CBS, IBS, and IS Tax
When you execute this 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. To avoid the report displaying the missing definitions for CST code and tributary class message for the lines that do not have the setup defined in F76B009, you must enter values in the Tax Rules tab processing options of the report for CBS, IBS, and IS. This report updates the F76TX002 table to store the CST code and tributary class for the tax lines from the sales order for which you run the report.
When you use the P76TX004 program to specify the tax exemptions for CBS and IBS taxes, the system automatically retrieves the tributary class and CST code from F76B009 in the same way as it does for R76TX004.
If the setup for the combination of values for the tax lines is missing in F76B009, then you can enter them manually by selecting the CBS and IBS Tax Rule option from the Row menu. Then, from the Search and Select form, search for the combination of the tributary class and CST code to determine the applicable exemption. This form enables you to search for the applicable tax exemption by searching for the CST code and tributary class code combination record on the basis of CST code value, tributary class code value, or any of the parameters from purpose, first party business, third party business, item type, and particpant profile. You can search for the applicable exemption by entering a value in one or more of these fields. This gives you the flexibility to search for the tax exemption on the basis of the data that you enter. For CBS and IBS taxes, if the tax type is F, R, or D, you must select the Returned Tax checkbox for the system to enable the fields for returned tax rate and amount. If you enter the rate of the returned tax, the system automatically calculates the tax amount and stores the rate and the amount in F76TX002 when you save the record. However, if you enter the tax amount, the system leaves the tax rate blank in the table, and stores only the returned tax amount.
If the setup for the combination of values for the tax lines is missing in F76B009 for the IS taxes, you can enter it manually by selecting the IS Tax Rule option from the Row menu, and search for the combination record for CST code and tributary class code. This Search and Select window also gives you the flexibility to search for the applicable tax exemption on the basis of any values that you enter from the CST code, tributary code, and the other parameters, which are purpose, first party business, third party business, item type, and participant profile.
In addition to this, use the Regular Tax Rule option on the Row menu to enter the original taxes applicable on an order for the purpose of loading data into the XML to be submitted to the government.