2 Global Tax Configuration

The Global Tax solution is able to calculate taxes on top of costs not directly associated to individual items (for example, non-merchandise related costs such as freight, fees, insurance and others). In Merchandising, these costs are configured using Estimated Landed Cost (ELC) cost components that are set up at the item level and purchase orders. The ELC cost components can be mapped to non-merchandise cost codes which can be used for GL accounts mapping.

From a tax perspective the non-merchandise codes to which ELCs are mapped are taken as the basis from which the taxes are calculated. As these non-merchandise codes have the flexibility to be mapped to the ELCs, it is the customers' choice as to the level of information they want to use in order to have taxes applied.

Non-merchandise codes can be used in tax rules as a tax basis to which the tax will be calculated. In order to have non-merchandise codes available to be used in tax rules configuration, they must be defined as taxable.

Similarly to non-merchandise codes, custom flexible attributes can also be used in tax rules configuration, however they will work as conditions to have a tax rule applied. CFAS can be associated to items and to entities in a tax rule configuration and will work as a filter to have specific tax rules applied in a transaction. In order to have CFAS available for tax rules configuration they must be defined as taxable.

In addition to the configuration of CFAS and Non-Merchandise codes, the tax codes can be grouped so the tax calculation logic will consider tax codes with the same group as one tax. This scenario can be leveraged by customers that need separated tax codes for accounting purposes, even though the tax perse is the same.

In order to define non-merchandise codes and CFAS as taxable, customers will be able to use foundation data spreadsheet download/upload process.

In Foundation Data task, under Template Type: "Finance Administration", new template "Taxable Attributes" can be used to download existing CFAS and non-merchandise codes in order to flag them as taxable. Same for tax codes that can be associated to tax groups. Once these inputs are done they can be uploaded back.