| # Tax calculation This functionality is specific for India. Infor ERP LN calculates tax on the following types of transactions, among others: Sales invoices Purchase invoices Project invoices Interest invoices Advance payments Journal vouchers Whether Infor ERP LN calculates tax on advance payments depends on the Calculate Tax on Advance Payments/Receipts parameter in the CMG Parameters (tfcmg0100s000) session. Level of tax calculation Usually, tax must be calculated for the individual transaction lines. Important! For the Indian taxation localization, the tax must be calculated on transaction line level. Ensure that the parameters described below are set to calculate tax on transaction line level. For manually entered purchase invoices, you can select the Level of Tax Calculation in the following sessions: ACP Parameters (tfacp0100s000), the default value Purchase Invoices (tfacp1110s000), for each transaction. The level of tax calculation can be: Invoice Header Transaction Line For purchase invoices to which only one tax code applies, you can calculate the tax at invoice header level. If several tax codes and/or tax types apply, you must calculate the tax by transaction line. As a rule, you create manual sales invoices in Central Invoicing and Infor ERP LN calculates the tax for each transaction line. However, for sales invoices that you create manually in the Accounts Receivable module, you can select the Level of Tax Calculation or use the default value you selected in the ACR Parameters (tfacr0100s000) session. Tax on advance payments In some countries, tax is charged on advance payments/receipts. For example, in India, withholding income tax applies to purchase invoices and advance payments. If you want to charge tax on advance payments/receipts, you must select the Calculate Tax on Advance Payments/Receipts check box in the CMG Parameters (tfcmg0100s000) session. You must also enter the minimum amount in the Minimum Amount for Tax Calculation field of the CMG Parameters (tfcmg0100s000) session. If an advance payment is made or received, you can specify a tax amount for the following types of transactions: Bank transactions Anticipated payments Anticipated receipts Standing orders of the Advance type Related topics Maximum tax amount To set up Tax Deducted at Source (TDS) |