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<ManualTopic ID="/baanerp/tc/onlinemanual/000031" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To set up tax handling</Title>
		<Keyword><Level1>Tax</Level1>
			<Level2>setting up</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Before you can set up the tax information, you must define the necessary data. Not all the data is required for all the available tax types.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>If you use a tax provider, follow the steps as described in <Link href="/baanerp/tc/onlinemanual/000070" role="manual">Setting up the tax-provider interface</Link>.</Paragraph>
			<Paragraph></Paragraph>
		</Note>
		<GeneralSection><SectionTitle>Prerequisites</SectionTitle>
			<List><ListIntro>Before you can set up the tax information you must define:</ListIntro>
				<ListItem><Link href="/baanerp/tc/glossary/glossary#Countries.tc" role="glossary">Countries</Link>, in the <GUIRef href="/baanerp/tc/mcs/tcmcs0510m000" role="session">Countries (tcmcs0510m000)</GUIRef> session.</ListItem>
				<ListItem>For countries in the European Union, the <Link href="/baanerp/tc/glossary/glossary#GEOCountrCod.tc" role="glossary">GEO country codes</Link>, in the <GUIRef href="/baanerp/tc/mcs/tcmcs0510m000" role="session">Countries (tcmcs0510m000)</GUIRef> session.</ListItem>
				<ListItem>Select or clear the <GUIRef href="/baanerp/tc/com/tccom0000s000#tccom999.dstx" role="formfield">Destination Sales Tax Applicable</GUIRef> check box in the <GUIRef href="/baanerp/tc/com/tccom0000s000" role="session">COM Parameters (tccom0000s000)</GUIRef> session.</ListItem>
				<ListItem>For destination sales tax, the <Link href="/baanerp/tc/glossary/glossary#Address.tc" role="glossary">addresses</Link> of the warehouses from which you ship the goods and the delivery addresses, in the <GUIRef href="/baanerp/tc/com/tccom4530m000" role="session">Addresses (tccom4530m000)</GUIRef> session.</ListItem>
				<ListItem>For destination sales tax, the <Link href="/baanerp/tc/glossary/glossary#000014" role="glossary">GEO codes</Link> of the address, in the <GUIRef href="/baanerp/tc/com/tccom4530m000" role="session">Addresses (tccom4530m000)</GUIRef> session. If you use a <Link href="/baanerp/tc/glossary/glossary#000013" role="glossary">tax provider</Link> you must use the tax provider to generate the GEO code of each address.</ListItem>
				<ListItem>The <Link href="/baanerp/tc/glossary/glossary#TaxAuthor.tc" role="glossary">Tax authorities</Link> in each country, in the <GUIRef href="/baanerp/tc/mcs/tcmcs1137m000" role="session">Tax Authorities (tcmcs1137m000)</GUIRef> session.</ListItem>
				<ListItem>The <Link href="/baanerp/tf/glossary/glossary#LedgerAccoun.tf" role="glossary">ledger accounts</Link> and the dimensions to which SSA ERP must post the tax amounts, in <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef>.</ListItem>
				<ListItem>The reasons for <Link href="/baanerp/tc/glossary/glossary#TaxExempt.tc" role="glossary">tax exemption</Link>, in the <GUIRef href="/baanerp/tc/mcs/tcmcs0105m000" role="session">Reasons (tcmcs0105m000)</GUIRef> session.</ListItem>
			</List>
		</GeneralSection>
		<Note><SectionTitle>Note</SectionTitle>
			<ProcedureList><ListIntro>To indicate that a company resides in a European Union country, take the following steps:</ListIntro>
				<ListItem>In the <GUIRef href="/baanerp/tc/mcs/tcmcs0110s000" role="session">Countries (tcmcs0110s000)</GUIRef> session, mark a country as an EU country.</ListItem>
				<ListItem>In the <GUIRef href="/baanerp/tc/com/tccom0100s000" role="session">Implemented Software Components (tccom0100s000)</GUIRef> session, assign the country to a company.</ListItem>
			</ProcedureList>
		</Note>
		<GeneralSection><SectionTitle>To set up the tax information:</SectionTitle>
			<ProcedureList><ListItem>Define a tax code for each type of tax, in the <GUIRef href="/baanerp/tc/mcs/tcmcs0137m000" role="session">Tax Codes (tcmcs0137m000)</GUIRef> session.</ListItem>
				<ListItem>Assign the tax codes to each country in which they are required and specify the tax code details, in the <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000" role="session">Tax Codes by Country (tcmcs0536m000)</GUIRef> session.</ListItem>
				<ListItem>Specify whether the tax is a single or multiple tax code in the <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000" role="session">Tax Codes by Country (tcmcs0536m000)</GUIRef> session (the same session you use in step 2).</ListItem>
				<ListItem>For a singular tax code, define the tax rate in the <GUIRef href="/baanerp/tc/mcs/tcmcs0132m000" role="session">Single Tax Rates (tcmcs0132m000)</GUIRef> session. You can choose <GUIRef href="" role="manual">Single Tax</GUIRef> from the <GUIRef href="" role="menu">Specific</GUIRef> menu of the <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000" role="session">Tax Codes by Country (tcmcs0536m000)</GUIRef> overview session.</ListItem>
				<ListItem>For multiple tax codes, specify the part details in the <GUIRef href="/baanerp/tc/mcs/tcmcs0535m000" role="session">Multiple Tax Code Lines (tcmcs0535m000)</GUIRef> session. You can choose <GUIRef href="" role="manual">Multiple Tax</GUIRef> from the <GUIRef href="" role="menu">Specific</GUIRef> menu of the <GUIRef href="/baanerp/tc/mcs/tcmcs0536m000" role="session">Tax Codes by Country (tcmcs0536m000)</GUIRef> overview session. SSA ERP assigns a sequence number to each tax code line.</ListItem>
				<ListItem>For multiple tax codes, define the tax rates of each tax code line in the <GUIRef href="/baanerp/tc/mcs/tcmcs0133m000" role="session">Multiple Tax Rates (tcmcs0133m000)</GUIRef> session. You can choose Multiple Tax Rates from the <GUIRef href="" role="menu">Specific</GUIRef> menu of the <GUIRef href="/baanerp/tc/mcs/tcmcs0535m000" role="session">Multiple Tax Code Lines (tcmcs0535m000)</GUIRef> overview session.</ListItem>
				<ListItem>Specify the ledger accounts to which SSA ERP must post the tax amounts, per financial company. <List><ListIntro>In each financial company of your system, use the following sessions:</ListIntro>
						<ListItem><GUIRef href="/baanerp/tf/gld/tfgld0571m000" role="session">Posting Data for Tax Codes (tfgld0571m000)</GUIRef>, for single tax codes and for multiple tax codes. For multiple tax codes, you must only specify the sales ledger account in this session.</ListItem>
						<ListItem><GUIRef href="/baanerp/tf/gld/tfgld0570m000" role="session">Posting Data for Multiple Tax Codes (tfgld0570m000)</GUIRef>, to specify the tax ledger accounts for multiple tax codes.</ListItem>
					</List>
				</ListItem>
				<ListItem>Link the tax codes to items or item groups in the appropriate sessions: <List><ListItem><GUIRef href="/baanerp/td/isa/tdisa0101s000" role="session">Item - Sales (tdisa0101s000)</GUIRef>.</ListItem>
						<ListItem><GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Item - Purchase (tdipu0101m000)</GUIRef>.</ListItem>
						<ListItem><GUIRef href="/baanerp/td/isa/tdisa0102s000" role="session">Item - Sales Defaults (tdisa0102s000)</GUIRef>.</ListItem>
						<ListItem><GUIRef href="/baanerp/td/ipu/tdipu0102m000" role="session">Item - Purchase Defaults (tdipu0102m000)</GUIRef>.</ListItem>
					</List>
				</ListItem>
				<ListItem>Enter the default tax code for freight invoices in the <GUIRef href="/baanerp/fm/fri/fmfri0100m000" role="session">Freight Invoicing Parameters (fmfri0100m000)</GUIRef> session.</ListItem>
				<ListItem>If you define <Link href="/baanerp/tc/glossary/glossary#000338" role="glossary">VAT</Link> codes for European Union countries, you must select the tax codes for the different VAT types in the <GUIRef href="/baanerp/tc/mcs/tcmcs0138m000" role="session">Tax Handling (tcmcs0138m000)</GUIRef> session. You can also use this session to link the VAT type codes to items and to freight invoices. For details, see <Link href="/baanerp/tc/onlinemanual/000316" role="manual">To define tax codes for EU VAT rates</Link>.</ListItem>
				<ListItem><ProcedureList><ListIntro>For <Link href="/baanerp/tc/glossary/glossary#000338" role="glossary">VAT</Link> reporting, set up the relations by tax position using the sessions listed here. You can set up the relations for multiple countries at once as described in <Link href="/baanerp/tc/onlinemanual/000361" role="manual">Country groups</Link>.</ListIntro>
						<ListItem><GUIRef href="/baanerp/tf/gld/tfgld0120m000" role="session">Tax Positions (tfgld0120m000)</GUIRef>
						</ListItem>
						<ListItem><GUIRef href="/baanerp/tf/gld/tfgld0521m000" role="session">Relations by Tax Position (tfgld0521m000)</GUIRef>
						</ListItem>
					</ProcedureList>
				</ListItem>
			</ProcedureList>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000033" role="manual">To use tax codes</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000361" role="manual">Country groups</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000316" role="manual">To define tax codes for EU VAT rates</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000317" role="manual">EU VAT codes</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000105" role="manual">Sales Tax on Purchases</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
