| # To set up an aggregate tax code This functionality is specific for India. Purchase orders, sales orders and invoices often require complex tax representation with multiple tax codes wherein each tax is calculated on a different amount. You must setup an aggregate tax code with all the applicable taxes and amounts. For Example, Excise duty and ecess on excise duty are calculated on assessable value for excise; sales tax is calculated on the sum of the order line amount, the excise duty and the ecess on excise duty. To set up an process an aggregate tax, complete the following steps: Enable aggregate tax functionality In the India Localization Parameters (tccom9136m00l) session, in the Common tab, select the Indian Localizations Applicable checkbox. Define the maximum number of layers In the Tax Parameters (tctax0100m000) session, in the Number of Layers field enter a value between 2 and 10. The Aggregate Taxes (tctax9141m00l) session must have at least two layers, one for the amount on which the tax is applied and another for the tax code details. Define individual tax codes In the Tax Codes by Country (tcmcs0136s000) session, define a tax code for each kind of tax. Select either the Aggregate Tax check box or Singular Tax check box. You must select the appropriate Indirect Tax for each tax code. Define tax rates In the Single Tax Rates (tcmcs0132m000) session, define the tax rates for all the singular tax codes. Define ledger accounts In the Posting Data for Tax Codes (tfgld0171s000) session, define the ledger accounts for all the singular tax codes. Approve individual tax codes In the Tax Codes by Country (tcmcs0536m000) session, approve all the individual tax codes defined in the steps 3,4 and 5. You can add only approved tax codes to an aggregate tax code. For more information on defining individual tax codes, refer to the To set up tax codes by country section. Define an aggregate tax code In the Tax Codes by Country (tcmcs0136s000) session, define a tax code and select the Aggregate Tax check box to indicate that the tax code is an aggregate tax code. For an aggregate tax code, you cannot enter other tax details. Add tax codes to aggregate tax code In the Tax Codes by Country (tcmcs0536m000) session, on the Specific menu, select Aggregate Taxes. The Aggregate Taxes (tctax9141m00l) session starts. In the Aggregate Taxes (tctax9141m00l) session, add the details of amounts and tax codes to the aggregate tax code. You must link at least one tax code of type VAT. For more information on adding tax codes to an aggregate tax, refer to Example of aggregate tax code and To use layers in aggregate tax. Approve the aggregate tax code In the Tax Codes by Country (tcmcs0536m000) session, approve the aggregate tax code. Infor ERP LN can only link approved aggregate tax codes to the transactions. Related topics Example of aggregate tax code To use layers in aggregate tax |