Understanding Economic Activity Codes

When you use the Tax Rate/Areas program to set up tax rate codes for Colombia, the system automatically displays the Additional Tax Information form on which you associate the economic activity code to the tax rate area. The system saves the code that you enter to the Additional Tax Areas - COL table (F76C4008).

When you enter standard vouchers or invoices, or logged vouchers, the system retrieves the economic activity code when it calculates taxes on the vouchers. The system saves information about the relationship between the voucher and the economic activity code in the A/P Ledger Tag Table - COL table (F76C4011). If no economic activity code exists for the tax rate code in the F76C4008 table, the system uses the economic activity code from the supplier's address book record. If no code exists in the address book record, the system returns an error.

When you set up tax rates codes you can enter or modify the economic activity code for existing tax rate codes by selecting the tax rate code and then selecting Regional Info from the Row menu on the Tax Rate/Area Revisions form.

You further define economic activity by specifying the effective dates, tax rate, and minimum amount on which the tax is assessed. You use the I.C.A. program (P76CI00) to specify the dates, rate, and amount by the city and economic code. You set a processing option in the I.C.A. program to identify the system 00 category code in which you set up codes for the source city for which you pay taxes by city and economic activity.

It is mandatory to enable the Economic Activity on the Tax Parameter program (P76CI00).