Considerations for Configuring Inclusive Taxes

Calculating taxes as inclusive of the item line amount is primarily driven by the tax legislation and the business relationship between the transacting parties. Configure your tax setup accordingly to capture the inclusiveness as per the taxes and the parties involved within a transaction.

The following table provides some of the key inclusiveness requirements and the corresponding setup:

Inclusiveness Requirement	Setup Based on the Tax Inclusiveness Processing Hierarchy
Always apply to specific tax rates regardless of the party setup	Tax rate: Select Standard inclusive handling or Special inclusive handling for the tax inclusion method Process complete Tax registration party: Not applicable Party site registration: Not applicable Party registration: Not applicable Party site tax profile: Not applicable Party tax profile: Not applicable Legal reporting unit registration: Not applicable Legal reporting unit tax profile: Not applicable Tax: Not applicable
Apply to specific taxes and all associated tax rates originating from certain tax jurisdictions for certain transacting third-party sites	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Registration record at tax jurisdiction level, for example, for tax regime, tax, and tax jurisdiction, with the option for inclusiveness set to Yes Process complete Party registration: Not applicable Party site tax profile: Not applicable Party tax profile: Not applicable Tax: Not applicable
Apply to specific taxes and all associated tax rates regardless of the tax jurisdiction for certain transacting third-party sites	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Registration record at tax level, for example, for tax regime and tax, with the option for inclusiveness set to Yes Process complete Party registration: Not applicable Party site tax profile: Not applicable Party tax profile: Not applicable Tax: Not applicable
Apply to all taxes defined for a tax regime for certain transacting third-party sites	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Registration record at tax regime level with the option for inclusiveness set to Yes Process complete Party registration: Not applicable Party site tax profile: Not applicable Party tax profile: Not applicable Tax: Not applicable
Apply to all taxes and all tax regimes for certain transacting third-party sites	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Set the inclusiveness option to Blank or no record Party registration: Set the inclusiveness option to Blank or no record Party site tax profile: Set the inclusiveness option to Yes Process complete Party tax profile: Not applicable Tax: Not applicable
Apply to specific taxes and all associated tax rates originating from certain tax jurisdictions for all transacting third-party sites defined for a party	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Set the inclusiveness option to Blank or no record Party registration: Registration record at tax jurisdiction level, for example, for tax regime, tax, and tax jurisdiction, with the option for inclusiveness set to Yes Process complete Party site tax profile: Not applicable Party tax profile: Not applicable Tax: Not applicable
Apply to specific taxes and all associated tax rates regardless of the tax jurisdiction for all transacting third-party sites defined for a party	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Set the inclusiveness option to Blank or no record Party registration: Registration record at tax level, for example, for tax regime and tax, with the option for inclusiveness set to Yes Process complete Party site tax profile: Not applicable Party tax profile: Not applicable Tax: Not applicable
Apply to all taxes defined for a tax regime for all transacting third-party sites defined for a party	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Set the inclusiveness option to Blank or no record Party registration: Registration record at tax regime level with the option for inclusiveness set to Yes Process complete Party site tax profile: Not applicable Party tax profile: Not applicable Tax: Not applicable
Apply to all taxes and all tax regimes for all transacting third-party sites defined for a party	Tax rate: Select Blank for the tax inclusion method Tax registration party: Third party Party site registration: Set the inclusiveness option to Blank or no record Party registration: No record Party site tax profile: Set the inclusive option to Blank Party tax profile: Set the inclusiveness option to Yes Process complete Tax: Not applicable
Apply to certain taxes originating from certain tax jurisdictions for all transacting third parties originating from a specific business unit or legal entity	Tax rate: Select Blank for the tax inclusion method Tax registration party: First party Legal reporting unit registration: Registration record at tax jurisdiction level, for example, for tax regime, tax, and tax jurisdiction, with the option for inclusiveness set to Yes Process complete Legal reporting unit tax profile: Not applicable Tax: Not applicable
Apply to certain taxes regardless of the tax jurisdiction for all transacting third parties originating from a specific business unit or legal entity	Tax rate: Select Blank for the tax inclusion method Tax registration party: First party Legal reporting unit registration: Registration record at tax level, for example, for tax regime and tax, with the option for inclusiveness set to Yes Process complete Legal reporting unit tax profile: Not applicable Tax: Not applicable
Apply to all taxes defined for a tax regime for all transacting third parties originating from a specific business unit or legal entity	Tax rate: Select Blank for the tax inclusion method Tax registration party: First party Legal reporting unit registration: Registration record at tax regime level with the option for inclusiveness set to Yes Process complete Legal reporting unit tax profile: Not applicable Tax: Not applicable
Apply to all taxes and all tax regimes for all transacting third parties originating from a specific business unit or legal entity	Tax rate: Select Blank for the tax inclusion method Tax registration party: First party Legal reporting unit registration: No record Legal reporting unit tax profile: Set the inclusiveness option to Yes Process complete Tax: Not applicable
Apply to certain taxes for all transacting third parties originating from any business unit or legal entity	Tax rate: Select Standard inclusive handling or Special inclusive handling for the tax inclusion method Tax registration party: Third party or first party Party site registration: No record Party registration: No record Party site tax profile: Set the inclusiveness option to Blank Party tax profile: Set the inclusiveness option to Blank Legal reporting unit registration: No record Legal reporting unit tax profile: Set the inclusiveness option to Blank Tax: Select Standard inclusive handling or Special inclusive handling for the tax inclusion method Process complete