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<ManualTopic ID="/baanerp/tf/onlinemanual/000127" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Tax calculation</Title>
		<Keyword><Level1>Tax calculation</Level1>
		</Keyword>
	</Header>
	<GeneralSection><List><ListIntro>The following types of tax calculation are explained:</ListIntro>
			<ListItem>Tax on sales invoices.</ListItem>
			<ListItem>Tax on purchase invoices.</ListItem>
			<ListItem>Tax on advance payments.</ListItem>
			<ListItem>Tax on settled discounts.</ListItem>
		</List>
		<GeneralSection><SectionTitle>Tax on sales invoices</SectionTitle>
			<List><ListIntro>The tax on sales invoices, which are created in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000" role="session">Sales Invoices (tfacr1110s000)</GUIRef> session, can be calculated at two different levels:</ListIntro>
				<ListItem>The invoice header level</ListItem>
				<ListItem>The transaction line level</ListItem>
			</List>
			<Paragraph>You can use the tax at invoice header level, if only one tax type applies to the invoice. If there are several tax types, you must define the tax by transaction line.</Paragraph>
			<Paragraph>You can define the level of tax calculation for each invoice in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000#tfacr200.lvat" role="formfield">Level of Tax Calc.</GUIRef> field of the <GUIRef href="/baanerp/tf/acr/tfacr1110s000" role="session">Sales Invoices (tfacr1110s000)</GUIRef> session. You can define the default value in the <GUIRef href="/baanerp/tf/acr/tfacr0100s000" role="session">ACR Parameters (tfacr0100s000)</GUIRef> session.</Paragraph>
			<List><ListIntro>If you select tax calculation at invoice header level in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000" role="session">Sales Invoices (tfacr1110s000)</GUIRef> session, you can enter:</ListIntro>
				<ListItem>A tax country in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000#tfacr200.cvat" role="formfield">Tax Country/Code</GUIRef> field</ListItem>
				<ListItem>A tax code in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000#tfacr200.vatc" role="formfield">Tax Country/Code</GUIRef> field</ListItem>
				<ListItem>A tax amount in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000#screen.vata" role="formfield">Tax Amount</GUIRef> field.</ListItem>
			</List>
			<Paragraph>SSA ERP calculates a default tax amount that is based on the total invoice amount, the tax country, the tax code, and the invoice's document date. If you do not enter a tax code, the tax amount automatically becomes zero and cannot be changed.</Paragraph>
			<Paragraph>If you select tax calculation at transaction line level in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000" role="session">Sales Invoices (tfacr1110s000)</GUIRef> session, you must enter a tax country at invoice header level. However, you cannot enter a tax code or a tax amount. You must enter a tax code and a tax amount separately for each transaction line in the <GUIRef href="/baanerp/tf/acr/tfacr1111s000" role="session">Sales Invoice Transactions (tfacr1111s000)</GUIRef> session. SSA ERP calculates the total tax amount for the invoice based on the separate tax amounts that are entered for the transaction lines. After entering the transactions, you can view the total tax amount in the <GUIRef href="/baanerp/tf/acr/tfacr1110s000#screen.vata" role="formfield">Tax Amount</GUIRef> field of the <GUIRef href="/baanerp/tf/acr/tfacr1110s000" role="session">Sales Invoices (tfacr1110s000)</GUIRef> session.</Paragraph>
			<List><ListIntro>The default tax amount is calculated based on:</ListIntro>
				<ListItem>The invoice amount (this amount can be net or gross, depending on the value of the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.gnen" role="formfield">Amounts Entered in SSA ERP LN Finance</GUIRef> field in the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000" role="session">Tax Codes by Country (tcmcs0136s000)</GUIRef> session)</ListItem>
				<ListItem>The tax country</ListItem>
				<ListItem>The tax code</ListItem>
				<ListItem>The document date</ListItem>
			</List>
			<Paragraph>In the <Link href="/baanerp/tf/gld/tfgld1109s000" role="session">Tax Codes by Line (tfgld1109s000)</Link> session, you can specify the tax amounts. If singular tax is used, only one line is shown. If multiple tax is used, you can specify the tax amounts for each transaction line.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Tax on manual sales invoices</SectionTitle>
			<Paragraph>In <GUIRef href="/baanerp/ci" role="package">Central Invoicing</GUIRef>, you can manually create sales invoices in the <GUIRef href="/baanerp/ci/sli/cisli2120s000" role="session">Manual Sales Invoice Data (cisli2120s000)</GUIRef> session. To calculate tax in the invoice lines, select the <GUIRef href="/baanerp/ci/sli/cisli2120s000#cisli220.ctyn" role="formfield">Calculate Tax</GUIRef> check box.</Paragraph>
			<Paragraph>If you select the <GUIRef href="/baanerp/ci/sli/cisli2120s000#cisli220.ctyn" role="formfield">Calculate Tax</GUIRef> check box, you can then specify a tax country and a tax code for each invoice line in the <GUIRef href="/baanerp/ci/sli/cisli2525m000" role="session">Manual Sales Invoice Data - Lines (cisli2525m000)</GUIRef> session and SSA ERP displays the calculated tax amounts.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Shifted tax</SectionTitle>
			<List><ListIntro>Shifted tax is kept aside and is not included in the total tax amount. The shifted tax amount is posted to a tax account. Simultaneously, a reverse entry is generated on a tax contra-account. In the tax analysis the amount is included twice:</ListIntro>
				<ListItem>As an entry on the tax account.</ListItem>
				<ListItem>As a reverse entry on the tax contra-account.</ListItem>
			</List>
			<Paragraph>Shifted tax is used in The Netherlands in relation to legislation concerning the responsibility for payment of taxes and social security contributions (invoices from subcontractors to the main contractor). Shifted tax can be used in the European Union for purchase invoices from other EU countries. Such invoices do not state tax, but when posting the invoices you must calculate a fictitious tax amount (against the national tax rate), which is included on the tax report as chargeable and payable.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Tax on purchase invoices</SectionTitle>
			<List><ListIntro>The tax on purchase invoices, which are created in the <GUIRef href="/baanerp/tf/acp/tfacp1110s000" role="session">Purchase Invoices (tfacp1110s000)</GUIRef> session, can be calculated at two different levels:</ListIntro>
				<ListItem>The invoice header level</ListItem>
				<ListItem>The transaction line level</ListItem>
			</List>
			<Paragraph>You can use the tax at invoice header level, if only one tax type applies to the invoice. If several tax types apply, you must define the tax by transaction line.</Paragraph>
			<Paragraph>You can define the tax-calculation level by using the <GUIRef href="/baanerp/tf/acp/tfacp1110s000#tfacp200.lvat" role="formfield">Level of Tax Calc.</GUIRef> field in the <GUIRef href="/baanerp/tf/acp/tfacp1110s000" role="session">Purchase Invoices (tfacp1110s000)</GUIRef> session. The default value of this field depends on the parameter settings for the <Link href="/baanerp/tf/onlinemanual/tfacp" role="module">Accounts Payable (ACP)</Link> module.</Paragraph>
			<List><ListIntro>If the tax calculation level is at invoice-header level, you can enter a tax code and a tax amount in the <GUIRef href="/baanerp/tf/acp/tfacp1110s000" role="session">Purchase Invoices (tfacp1110s000)</GUIRef> session. SSA ERP enters a default tax amount that is based on:</ListIntro>
				<ListItem>The gross invoice amount</ListItem>
				<ListItem>The tax country</ListItem>
				<ListItem>The tax code</ListItem>
				<ListItem>The invoice's document date</ListItem>
			</List>
			<List><ListIntro>The incorrect default tax amount appears whenever:</ListIntro>
				<ListItem>the tax code entered is a multiple or singular tax, and</ListItem>
				<ListItem>a rate for excess amounts has been defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0132m000" role="session">Single Tax Rates (tcmcs0132m000)</GUIRef> session The amount entered in the Amount field is always gross amount, including the tax. Tax is filtered from this amount based on the tax rates and is displayed by default in the Tax Amount field. This amount can be changed if desired.</ListItem>
			</List>
			<Paragraph>If you do not enter a tax code, the tax amount automatically becomes zero and cannot be changed.</Paragraph>
			<List><ListIntro>You must enter the tax code and the tax amount by transaction line in one of the following sessions:</ListIntro>
				<ListItem>The <GUIRef href="/baanerp/tf/acp/tfacp1120s000" role="session">Purchase Invoice Transactions (tfacp1120s000)</GUIRef> session, if a cost invoice is concerned</ListItem>
				<ListItem>The <GUIRef href="/baanerp/tf/acp/tfacp1112m000" role="session">Tax Transactions (tfacp1112m000)</GUIRef> session, if an invoice that is related to orders is concerned. This session can only be activated if the invoice is related to orders and the level of tax calculation is equal to transaction line level.</ListItem>
			</List>
			<Paragraph>After you exit one of these sessions, SSA ERP calculates the total tax amount, which is displayed in the <GUIRef href="/baanerp/tf/acp/tfacp1110s000" role="session">Purchase Invoices (tfacp1110s000)</GUIRef> session.</Paragraph>
		</GeneralSection>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>If multiple tax is used, you can specify the tax amounts for each transaction line in the <Link href="/baanerp/tf/gld/tfgld1109s000" role="session">Tax Codes by Line (tfgld1109s000)</Link> session. The <GUIRef href="/baanerp/tf/gld/tfgld1109s000" role="session">Tax Codes by Line (tfgld1109s000)</GUIRef> session can be activated when the level of tax calculation equals the header.</Paragraph>
			<List><ListIntro>If expense tax is used, the tax amounts are reclassed during approval:</ListIntro>
				<ListItem>If there is an exemption on the order the full tax amount is reclassed to the tax variance account in the <GUIRef href="/baanerp/tf/acp/tfacp0100s000" role="session">ACP Parameters (tfacp0100s000)</GUIRef> session</ListItem>
				<ListItem>If there is no exemption code on the order the tax amount of the order is reclassed to the debit account of the integration transaction (see integration mapping scheme) purchase-expense tax. The credit account of this integration purchase-expense tax is not used. The difference between order and invoice is posted to the variance account.</ListItem>
			</List>
			<Paragraph>There are also reversals of tax which is posted during registration, if the tax code of the invoice and the order are different. Then the whole tax of the invoice is reclassed in case of expense tax only. During approval the tax is posted again, but now using the tax code of the order.</Paragraph>
			<Paragraph>If cost items are concerned and the item group equals one of the item group specified in the <GUIRef href="/baanerp/tc/mcs/tcmcs0123m000" role="session">Item Groups (tcmcs0123m000)</GUIRef> session, the tax of this cost item is reclassed to the account that is entered via the <GUIRef href="/baanerp/tf/acp/tfacp1133s000" role="session">Matched Purchase Invoice/Statement Line Transactions (tfacp1133s000)</GUIRef> session, which you can start via the Cost Item command of the Specific menu of the <GUIRef href="/baanerp/tf/acp/tfacp2541m000" role="session">Match Purchase Order Lines (tfacp2541m000)</GUIRef> session. So not to the debit account of expense purchase tax of the integration mapping scheme: this debit account is only used for purchased items, and for cost items which do not have the item groups specified in the <GUIRef href="/baanerp/tc/mcs/tcmcs0123m000" role="session">Item Groups (tcmcs0123m000)</GUIRef> session equal to the item group of the cost item. And in other cases not to the original cost account.</Paragraph>
		</Note>
		<GeneralSection><SectionTitle>Tax on advance payments</SectionTitle>
			<Paragraph>In some countries tax is charged on <Link href="/baanerp/tf/glossary/glossary#000050" role="glossary">advance payments/receipts</Link>, which exceed a certain minimum amount. If you want to charge tax on advance payments/receipts, you must select the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.advp" role="formfield">Calculate Tax on Advance Payments/Receipts</GUIRef> check box in the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef> session. You must also enter the minimum amount in the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.amin" role="formfield">Minimum Amount for Tax Calculation</GUIRef> field of the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef> session.</Paragraph>
			<List><ListIntro>If an advance payment is made or received, you can specify a tax amount in the following sessions:</ListIntro>
				<ListItem>The <GUIRef href="/baanerp/tf/cmg/tfcmg2100s000" role="session">Bank Transactions (tfcmg2100s000)</GUIRef> session</ListItem>
				<ListItem>The <GUIRef href="/baanerp/tf/cmg/tfcmg2116s000" role="session">Anticipated Payments (Details) (tfcmg2116s000)</GUIRef> session</ListItem>
				<ListItem>The <GUIRef href="/baanerp/tf/cmg/tfcmg2117s000" role="session">Anticipated Receipts (Details) (tfcmg2117s000)</GUIRef> session</ListItem>
			</List>
			<Paragraph>SSA ERP enters the singular tax amount on the <GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vaap" role="formfield">Account for Tax on Advance Payments</GUIRef> ledger account and the <GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vaar" role="formfield">Account for Tax on Advance Receipts</GUIRef> ledger account. You can define these ledger accounts in the <GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Tax Codes (tfgld0171s000)</GUIRef> session.</Paragraph>
			<Paragraph>SSA ERP enters the multiple tax amount on the <GUIRef href="/baanerp/tf/gld/tfgld0170s000#tfgld070.vaap" role="formfield">Account for Tax on Advance Payments</GUIRef> ledger account and the <GUIRef href="/baanerp/tf/gld/tfgld0170s000#tfgld070.vaar" role="formfield">Account for Tax on Advance Receipts</GUIRef> ledger account. You can define these ledger accounts in the <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef> session.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Tax on settled discounts</SectionTitle>
			<List><ListIntro>In some countries the charged tax is settled, for example, when a cash discount is deducted from an invoice. If you select the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.avat" role="formfield">Adjust Tax for Deductions</GUIRef> check box in the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef> session, the tax amount for <Link href="/baanerp/tf/glossary/glossary#AnticiPaymen.tf" role="glossary">anticipated payments</Link> is adjusted in case of:</ListIntro>
				<ListItem>A discount</ListItem>
				<ListItem>A late payment</ListItem>
				<ListItem>Payment differences</ListItem>
			</List>
			<Paragraph>You can define the step at which settlement must take place in case of anticipated payments in the <GUIRef href="/baanerp/tf/cmg/tfcmg0146s000" role="session">Posting Data by Bank/Payment Method (tfcmg0146s000)</GUIRef> session.</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000138" role="manual">Adjust tax for deductions</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000073" role="manual">Sales tax calculations</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000033" role="manual">To use tax codes</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000106" role="manual">Extensive Purchase Invoice Matching</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000126" role="manual">Ledger account and dimension structure</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
