Setting Up Tax Parameters

Access the Tax Parameters form.

Tax Rules System

Enter a user-defined code (H00/TX) that specifies the system to which the tax rules apply. The system allows you to select one option only. Values are:

1: AR and Sales Order

2: AP and Purchasing

3: GL and Journal Entry

Company/Supplier Tax Payer

Enter a user-defined code (76C/TC) that specifies the type of tax payer for the company that originates the transaction.

Tax Type

Enter the tax type, which is equal to the two first characters of the GL offset defined in the tax area

Minimum Amount

Specify whether the maximum amount that an item can be taxed must be taken into consideration to calculate withholdings.

(Release 9.1 Update) The minimum taxable amount is considered when using the tax explanation code V. You can also specify the minimum taxable amount on the VT tax line if it is generated by running the Additional Tax Calculation report (R76C0006) successive to the V-Type tax line.

Economic Activity

Specify whether the percentage of a tax must be calculated by city and economic activity. If you select Y, you must define percentages by city and economic activity.

Tax Rate 1

Enter the percentage of tax that should be assessed or paid to the corresponding tax authority, based on the tax area. Enter the percentage as a whole number and not as the decimal equivalent. For example, to specify 7 percent, enter 7, not .07. If the tax is a withholding, enter the percentage as a negative number.