Setting Up Accounts

You must specify the accounts used for tax processing. The setup for accounts includes these tasks:

Task	Purpose
Specify the general ledger accounts that you use for input and output tax. See Setting Up GUI/VAT General Ledger Account Mapping.	During the GL distribution step of transaction entry, the system distributes input tax to the debit account that you specify, and distributes output tax to the credit account that you specify.
Associate tax accounts to declaration sites. See Setting Up Tax Account Mapping for Declaration Sites.	In the standard software, the system determines the tax account to use based on the AAI setup for a company/business unit combination. In Taiwan, you must associate the tax accounts to the declaration sites so that the system can determine the AAI to use when processing the tax.

Task

Purpose

Specify the general ledger accounts that you use for input and output tax.

See Setting Up GUI/VAT General Ledger Account Mapping.

During the GL distribution step of transaction entry, the system distributes input tax to the debit account that you specify, and distributes output tax to the credit account that you specify.

Associate tax accounts to declaration sites.

See Setting Up Tax Account Mapping for Declaration Sites.

In the standard software, the system determines the tax account to use based on the AAI setup for a company/business unit combination. In Taiwan, you must associate the tax accounts to the declaration sites so that the system can determine the AAI to use when processing the tax.

This process flow shows the account setup that must occur before you process transactions with VAT.