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<ManualTopic ID="/baanerp/tc/onlinemanual/000070" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To set up the tax-provider interface</Title>
	</Header>
	<GeneralSection><Paragraph>After the tax provider is installed on the SSA ERP server, you must set up the interface between SSA ERP and the tax provider.</Paragraph>
		<ProcedureList><ListIntro>Setting up a tax provider consists of three steps:</ListIntro>
			<ListItem>Preparing the tax-provider interface implementation.</ListItem>
			<ListItem>Implementing the tax-provider interface.</ListItem>
			<ListItem>Adjusting the tax-provider interface setup.</ListItem>
		</ProcedureList>
		<ProcedureSection><Steps><Step><StepTitle>Preparing the tax-provider interface implementation</StepTitle>
					<ProcedureList><ListIntro>Before you implement the tax-provider interface, take the following steps:</ListIntro>
						<ListItem>Use the <GUIRef href="/baanerp/tc/com/tccom7140m000" role="session">Country Tax Provider Register (tccom7140m000)</GUIRef> session to specify the countries for which the tax provider must compute the tax amounts and keep a sales-tax register. For orders with ship-to addresses in other countries, SSA ERP computes the tax amounts.</ListItem>
						<ListItem>Verify that existing addresses in the countries specified in step 1, have the format that is required by the tax provider. The city, state/province, and ZIP/Postal code for U.S. and Canadian addresses must be entered in the correct address fields.</ListItem>
						<ListItem>Correct and convert the addresses with deviating formats. You can use the <GUIRef href="/baanerp/tc/com/tccom6211m000" role="session">Address Conversion Utility for Taxation (tccom6211m000)</GUIRef> session to correct addresses with specific deviating formats. You must correct addresses with other incorrect formats by using the <GUIRef href="/baanerp/tc/com/tccom4130s000" role="session">Addresses (tccom4130s000)</GUIRef> session.</ListItem>
						<ListItem>Install the tax provider using the instructions provided by the tax-provider vendor.</ListItem>
						<ListItem>Close the fiscal period using the <Link href="/baanerp/tf/gld/tfgld1206m000" role="session">Close Periods (tfgld1206m000)</Link> session.</ListItem>
					</ProcedureList>
				</Step>
				<Step><StepTitle>Implementing the tax-provider interface</StepTitle>
					<ProcedureList><ListIntro>To implement the tax provider interface, take the following steps:</ListIntro>
						<ListItem>Select the <GUIRef href="/baanerp/tc/com/tccom0000s000#tccom999.dstx" role="formfield">Sales Tax Applicable</GUIRef> check box in the <GUIRef href="/baanerp/tc/com/tccom0000s000" role="session">COM Parameters (tccom0000s000)</GUIRef> session.</ListItem>
						<ListItem>Select the <GUIRef href="" role="manual">Use Tax Provider</GUIRef> check box in the <Link href="/baanerp/tc/com/tccom6150s000" role="session">Tax Provider Parameters (tccom6150s000)</Link> session.</ListItem>
						<ListItem><List><ListIntro>Select the tax provider in the <GUIRef href="/baanerp/tc/com/tccom6150s000" role="session">Tax Provider Parameters (tccom6150s000)</GUIRef> session. The tax provider can be one of the following:</ListIntro>
								<ListItem>Taxware's Master Tax System</ListItem>
								<ListItem>Vertex's "O" series for Sales and Use Tax.</ListItem>
								<ListItem>Vertex's "Q" series for Sales and Use Tax.</ListItem>
							</List>
						</ListItem>
						<ListItem>Define the environment variables that are specific to the tax provider, by following the installation instructions in the SSA ERP Tax User Guide.</ListItem>
						<ListItem>Enter the countries to which the tax provider applies, in the <GUIRef href="/baanerp/tc/com/tccom7140m000" role="session">Country Tax Provider Register (tccom7140m000)</GUIRef> session. If the ship-to business partner's address is located in one of these countries, SSA ERP does not compute the tax amounts but passes on the tax data to the tax provider. For ship-to addresses in other countries, SSA ERP computes the tax amounts.</ListItem>
						<ListItem>Verify and assign GEO codes to existing address data by using the <GUIRef href="/baanerp/tc/com/tccom6210m000" role="session">Address Jurisdiction Verification Utility (tccom6210m000)</GUIRef> session.</ListItem>
						<ListItem>Evaluate the GEO codes and redefine the codes if necessary. <List><ListItem>If you use Vertex, perhaps you need to change the default selection of the <GUIRef href="" role="manual">Inside City Limits</GUIRef> check box in the <GUIRef href="/baanerp/tc/com/tccom4130s000" role="session">Addresses (tccom4130s000)</GUIRef> session.</ListItem>
								<ListItem>If more than one jurisdiction corresponds with the address data, on the <GUIRef href="" role="menu">Specific</GUIRef> menu choose Jurisdiction to start the <GUIRef href="/baanerp/tc/com/tccom7250m000" role="session">Select Tax Jurisdiction (tccom7250m000)</GUIRef> session.</ListItem>
							</List>
						</ListItem>
						<ListItem>Enter your company, business partners, and product-related data in the tax provider.</ListItem>
						<ListItem>Define the valid product categories in the <GUIRef href="/baanerp/tc/com/tccom7138m000" role="session">Product Category (tccom7138m000)</GUIRef> session. The product categories that you define must match the product categories defined in the tax provider.</ListItem>
						<ListItem>Enter the matrix of item groups, items, contract types, service types, and ledger account numbers by product category, in the <GUIRef href="/baanerp/tc/com/tccom7139s000" role="session">Product Category Tax Matrix (tccom7139s000)</GUIRef> session.</ListItem>
						<ListItem>Enter the <GUIRef href="/baanerp/ts/ctm/tsctm0105m000#tsctm005.txin" role="formfield">Tax Indicator</GUIRef> field in the <GUIRef href="/baanerp/ts/ctm/tsctm0105m000" role="session">Contract Types (tsctm0105m000)</GUIRef> session in <GUIRef href="/baanerp/ts" role="package">Service</GUIRef>. This indicates the type of tax processing required for the contract type. This information is required because services and rentals can be taxed differently.</ListItem>
						<ListItem>If you use Taxware, enter the point of title passage of each term of delivery in the <GUIRef href="/baanerp/tc/mcs/tcmcs0141m000" role="session">Terms of Delivery (tcmcs0141m000)</GUIRef> session. Taxware uses this information along with other data to determine the tax jurisdiction.</ListItem>
					</ProcedureList>
				</Step>
				<Step><StepTitle>Adjusting the tax-provider interface setup</StepTitle>
					<List><ListIntro>After you have implemented the tax-provider interface, consider to make the following adjustments:</ListIntro>
						<ListItem>Simplify the tax-code structure.</ListItem>
						<ListItem>Use separate tax codes for financial transactions.</ListItem>
						<ListItem>Create separate service contracts for each customer location.</ListItem>
					</List>
				</Step>
			</Steps>
		</ProcedureSection>
		<GeneralSection><SectionTitle>Simplify the tax-code structure</SectionTitle>
			<Paragraph>If you have already used SSA ERP without a tax provider, consider to perform a reevaluation of your current tax structure in <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef>. The tax provider does not require the complex tax handling implemented in SSA ERP for non-tax-provider users.</Paragraph>
			<Paragraph>If you use a tax provider, SSA ERP uses the tax codes to determine the ledger accounts to which the various amounts are posted. SSA ERP sets all tax codes to singular tax during implementation of the tax-provider interface. The tax provider determines the tax rates and the jurisdictions.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Use separate tax codes for financial transactions</SectionTitle>
			<Paragraph>You must enter the tax amounts of financial transactions manually in the tax provider prior to filing your quarterly reports. This is because the tax amounts of financial transactions are not written to the tax-provider tax register. Use the <GUIRef href="/baanerp/tc/com/tccom6212m000" role="session">Tax Provider Calculation Utility (tccom6212m000)</GUIRef> session to enter these tax amounts. You can define separate tax codes for financial transactions to facilitate tracking of the tax amounts of financial transactions.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Create separate service contracts for each customer location</SectionTitle>
			<Paragraph>SSA ERP uses the location of the covered installations as the delivery address for service contracts. For correct tax calculations, you must maintain separate contracts for each customer location.</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000069" role="manual">To use a tax provider</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
