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 in the taxable base for the purpose of tax calculation. Also, use this program to specify the tax exemptions for CBS, IBS, and IS taxes for the system to calculate the taxes accurately after taking into consideration these exemptions.

To apply tax exemptions for multiple sales orders at a time, run the Bulkupdate - Sales Tax Interface (R76TX004). You must set up the processing options to define the parameters for tax exemptions for the sales orders that you select to be updated accurately. You must specify values for the CST Code and Tributary Class for CBS, IBS, and IS taxes to run this report because the Bulkupdate report determines the tax exemptions on the basis of these two values. The remaining processing options to define the other parameters such as purpose code, first party business, and item code do not contribute towards ascertaining the exemptions for bulk update. If you enter values in those processing options, the system stores those values in the F76TX002 table, else it stores a blank for those parameters.

When you use the P76TX004 program to specify the tax exemptions for CBS and IBS taxes, select 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.

To specify the tax exemptions for IS taxes, select 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 Standard 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.