Enabling Taxes for Transactions and Simulation

Tax Simulator lets you choose the status of the taxes to consider for evaluation. The transaction header region in the Tax Simulator includes an Evaluate Taxes attribute.

You can set this attribute to:

• Enabled for simulation: Only taxes with the status Enable Tax for simulation are selected for processing.

  When you select Enable tax for simulation, the tax is available only for processing on Tax Simulator transactions and isn't calculated on live transactions.

• Enabled for transactions: Only taxes that are live or have both Enable tax for simulation and Enable tax for transactions selected on the tax record are considered for processing.

  This mimics the behavior of the processing for active taxes in the subledgers and is the default value when simulating or copying subledger transactions in the Tax Simulator.

• Enabled for transactions and simulation: Both taxes that have a status of Enable tax for simulation and taxes that have a status of Enable tax for simulation and Enable tax for transactions selected are processed.

  This lets you see behavior of both active and inactive taxes on the same transaction. When you select this option, the tax is considered active and is available for processing on both live transactions and Tax Simulator transactions.

  This is a useful tool when the calculation of one tax can impact another such as in the case of compounding tax formulas for tax calculation.