<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000139" xml:lang="en">
   <Header>
      <Title>Tax calculation</Title>
      <Keyword type="header" order="d1e1434212">
         <Level1>Tax calculation</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <List>
         <ListIntro>ERP Enterprise calculates tax on the following types of transactions, among others:</ListIntro>
         <ListItem>Sales invoices</ListItem>
         <ListItem>Purchase invoices</ListItem>
         <ListItem>Service invoices</ListItem>
         <ListItem>Project invoices</ListItem>
         <ListItem>Interest invoices</ListItem>
         <ListItem>Advance payments</ListItem>
         <ListItem>Settled discounts</ListItem>
         <ListItem>Journal vouchers</ListItem>
      </List>
      <Paragraph>Whether ERP Enterprise calculates tax on advance payments depends on the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000#tfcmg000.advp" role="manual">Calculate Tax on Advance Payments/Receipts</GUIRef> parameter
		in the <GUIRef href="/baanerp/tf/cmg/tfcmg0100s000" role="session">CMG Parameters (tfcmg0100s000)</GUIRef> session.</Paragraph>
      <Paragraph>The way in which ERP Enterprise handles tax on deductions is explained in <Link href="/baanerp/tc/onlinemanual/000138" role="manual">To adjust tax for deductions</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Level of tax calculation</SectionTitle>
      <Paragraph>Usually, tax must be calculated for the individual transaction
		lines.</Paragraph>
      <List>
         <ListIntro>For manually entered purchase invoices, you can select the <GUIRef href="/baanerp/tf/acp/tfacp1110s000#tfacp200.lvat" role="manual">Level of Tax Calculation</GUIRef> in the following sessions:</ListIntro>
         <ListItem>
            <GUIRef href="/baanerp/tf/acp/tfacp0100m000" role="session">ACP Parameters (tfacp0100m000)</GUIRef>, the default value.</ListItem>
         <ListItem>
            <GUIRef href="/baanerp/tf/acp/tfacp2600m000" role="session">Purchase Invoice Entry (tfacp2600m000)</GUIRef>, for each
		  transaction.</ListItem>
      </List>
      <List>
         <ListIntro>The level of tax calculation can be:</ListIntro>
         <ListItem>
            <GUIRef href="/baanerp/tf/domains/acp.vatc#header" role="option">Invoice Header</GUIRef>
         </ListItem>
         <ListItem>
            <GUIRef href="/baanerp/tf/domains/acp.vatc#transaction" role="option">Transaction Line</GUIRef>
         </ListItem>
      </List>
      <Paragraph>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.</Paragraph>
      <Paragraph>As a rule, you create manual sales invoices in <GUIRef href="/baanerp/ci" role="package">Invoicing</GUIRef> and ERP Enterprise calulates the tax
		for each transaction line. However, for sales invoices that you create manually
		in the <GUIRef href="/baanerp/tf/acr" role="module">Accounts Receivable</GUIRef> module, you can select the <GUIRef href="/baanerp/tf/acr/tfacr0100s000#tfacr000.vatc" role="manual">Level of Tax Calculation</GUIRef> or use the default value you
		selected in the <GUIRef href="/baanerp/tf/acr/tfacr0100s000" role="session">ACR Parameters (tfacr0100s000)</GUIRef> session.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Maximum tax amount</SectionTitle>
      <Paragraph>If a maximum tax amount applies for a specific tax code, you can
		specify the amount in the <GUIRef href="/baanerp/tc/mcs/tcmcs0132m000" role="session">Single Tax Rates (tcmcs0132m000)</GUIRef> and the <GUIRef href="/baanerp/tc/mcs/tcmcs0133m000" role="session">Multiple Tax Rates (tcmcs0133m000)</GUIRef> sessions.</Paragraph>
      <Paragraph>If the calculated tax amount exceeds the maximum tax amount, ERP Enterprise replaces the
		calculated tax amount with the maximum tax amount. For an example, refer to <Link href="/baanerp/tc/onlinemanual/000439" role="manual">Example of maximum tax amount</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection ID="advance.payments">
      <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="manual">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="manual">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 for the following types of transactions:</ListIntro>
         <ListItem>Bank transactions</ListItem>
         <ListItem>Anticipated payments</ListItem>
         <ListItem>Anticipated receipts</ListItem>
         <ListItem>Standing orders of the <GUIRef href="/baanerp/tf/domains/cmg.acta#advance" role="option">Advance</GUIRef> type</ListItem>
      </List>
      <Paragraph>ERP Enterprise enters the singular tax
		amount on the <GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vaap" role="manual">Purchase Tax on Advance Payments</GUIRef> ledger account and the <GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vaar" role="manual">Sales 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>ERP Enterprise enters the multiple tax
		amount on the <GUIRef href="/baanerp/tf/gld/tfgld0170s000#tfgld070.vaap" role="manual">Purchase Tax on Advance Payments</GUIRef> ledger account and the <GUIRef href="/baanerp/tf/gld/tfgld0170s000#tfgld070.vaar" role="manual">Sales 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="manual">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>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000138" role="manual">To adjust tax for deductions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000073" role="manual">Tax calculation and registration through the tax provider</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">Match and approve purchase invoices</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000126" role="manual">Ledger account and dimension structure</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>