Example of Setting Up Tax Configuration Options

This example demonstrates how you set up the appropriate tax configuration options for your company that has three regional centers.

These centers are responsible for tax setup and maintenance among other corporate activities. Each of these regional corporate centers is associated with a first-party legal entity and business unit.

Your company has its regional centers in these locations:

• North America (NAM), based in Redwood City, California, US

• Asian and Pacific (APAC), based in Melbourne, Australia

• Europe, Middle East, and Africa (EMEA), based in London, UK

Each country has a single first-party legal entity with a single business unit. These are the only exceptions to this rule:

• Countries with the regional corporate centers have a first-party legal entity and business unit for each corporate center.

• Sales, marketing, and manufacturing organization have a first-party legal entity and business unit.

Create tax regimes for each country and the appropriate tax configuration options.

Prerequisites

You must set up some values to create the appropriate tax configurations. These are the values you require:

1. Set up the legal entities for these countries:

   First-Party Legal Entity	Country
   EMEA LE	UK
   GB LE	UK
   FR LE	FR
   DE LE	DE
   APAC LE	AU
   AU LE	AU
   SI LE	SI
   NZ LE	NZ
   NAM LE	US
   US LE	US
   CA LE	CA

2. The sales, marketing, and manufacturing organization's business unit uses the tax configuration of the legal entity.

3. Set up the relevant tax regimes for each country's tax as shown here:

   Region	Country	Tax Regime	Tax
   EMEA	United Kingdom	GB VAT	GB VAT
   EMEA	France	FR VAT	FR VAT
   EMEA	Germany	DE VAT	DE VAT
   APAC	Australia	AU GST	AU GST
   APAC	Singapore	SI VAT	SI VAT
   APAC	New Zealand	NZ VAT	NZ VAT
   NAM	United States	US SALES TAX	US STATE SALES TAX US COUNTY SALES TAX US CITY SALES TAX
   NAM	Canada	CA HST and GST	CA HST CA GST

Setting Up Tax Configuration Options

1. On the Create Legal Entity Tax Profile page, select EMEA LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	GB VAT
   Configuration for Taxes and Rules	Party-specific configuration
   Configuration for Product Exceptions	Party-specific configuration
   Parent First-Party Organization	Blank
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

2. Select GB LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	GB VAT
   Configuration for Taxes and Rules	Parent first-party with party overrides
   Configuration for Product Exceptions	Parent first-party organization
   Parent First-Party Organization	EMEA LE
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

3. Select FR LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	FR VAT
   Configuration for Taxes and Rules	Parent first-party with party overrides
   Configuration for Product Exceptions	Parent first-party organization
   Parent First-Party Organization	EMEA LE
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

4. Select DE LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	DE VAT
   Configuration for Taxes and Rules	Parent first party with party overrides
   Configuration for Product Exceptions	Parent first-party organization
   Parent First-Party Organization	EMEA LE
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

5. Select APAC LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	AU GST
   Configuration for Taxes and Rules	Party-specific configuration
   Configuration for Product Exceptions	Party-specific configuration
   Parent First-Party Organization	Blank
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

6. Select AU LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	AU GST
   Configuration for Taxes and Rules	Parent first party with party overrides
   Configuration for Product Exceptions	Parent first-party organization
   Parent First-Party Organization	APAC LE
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

7. Select SI LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	SI VAT
   Configuration for Taxes and Rules	Parent first party with party overrides
   Configuration for Product Exceptions	Parent first-party organization
   Parent First-Party Organization	APAC LE
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

8. Select NZ LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	NZ VAT
   Configuration for Taxes and Rules	Parent first party with party overrides
   Configuration for Product Exceptions	Parent first-party organization
   Parent First-Party Organization	APAC LE
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

9. Select NAM LE in the Legal Entity field. In the Configuration Options tab enter:

   Field	Value
   Tax Regime Code	US SALES TAX
   Configuration for Taxes and Rules	Party-specific configuration
   Configuration for Product Exceptions	Party-specific configuration
   Parent First-Party Organization	Blank
   Effective Start Date	01-Jan-01

   Click Save and Create Another.

10. Select US LE in the Legal Entity field. In the Configuration Options tab enter:

    Field	Value
    Tax Regime Code	US SALES TAX
    Configuration for Taxes and Rules	Parent first party with party overrides
    Configuration for Product Exceptions	Parent first-party organization
    Parent First-Party Organization	NAM LE
    Effective Start Date	01-Jan-01

    Click Save and Create Another.

11. Select CA LE in the Legal Entity field. In the Configuration Options tab enter:

    Field	Value
    Tax Regime Code	CA GST and PST
    Configuration for Taxes and Rules	Parent first party with party overrides
    Configuration for Product Exceptions	Parent first-party organization
    Parent First-Party Organization	NAM LE
    Effective Start Date	01-Jan-01

    Click Save and Close.