Jurisdictions categorize the provision for income tax at a national or regional level. You must create jurisdictions for your application, and then create the associated currencies and entities. This task may be performed during system setup, implementation, or as your business expands.
The Jurisdiction Dimension defines the principal place of business for each legal entity. This dimension is used to define the Nations and Regions that are applicable for tax provision.
The following levels of jurisdictions can be created:
National jurisdictions represent a federal or country-level tax.
Regional jurisdictions can represent a state, province, territory, or other subdivision. For purposes of deductibility, Regional tax amounts can be set up to automatically flow into national calculations. Regional tax provisions can be calculated individually, or in total, by legal entity.
For every national jurisdiction that has associated regions, a corresponding <jurisdiction_name>_Regions parent member must be created under TRCS_AllRegions.
Note:If there is no separate tax for the Nation and its regions, it is not necessary to set up the individual regions for each nation.
See the following sections to configure the required jurisdictions, entities and currencies for the application using the Dimension Editor:
- Creating a National Jurisdiction
- Creating a Regional Jurisdiction
- Creating Entities
- Adding Currencies
- Refreshing the Database After Configuring Jurisdictions and Entities
Watch this tutorial video to learn about Configuring Entities and Jurisdictions in Tax Reporting Cloud.