19.3.2 Link Interest Component to Tax Component

An interest component can be the basis amount tag of one or more tax components. Since each coupon that is maintained can have several interest components you need to link each of these components to the tax components. The interest components can also be in a currency other than the tax currency.

Therefore, in addition to linking an interest component with the tax component, you need to specify the tax currency. If the currency of the interest component is different from the tax currency, then specify the tax exchange rate. To link an interest component with a tax component and to specify the tax currency for the exchange rate, click Exchange Rate in the Coupon Maintenance screen. The Exchange Rate for Tax Currencies screen is displayed.

Figure 19-6 Exchange Rate

Description of "Figure 19-6 Exchange Rate"

You also need to specify the exchange rate between the issuer payment currency and the tax currency. You can add or delete a tax component from the list of tax components maintained. To add a new component, click add icon and select the new component from the pick list. To delete an existing tax component, highlight it and click the delete icon.