<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000365" xml:lang="en">
   <Header>
      <Title>To model tax exceptions</Title>
      <Keyword type="header" order="d1e1443146">
         <Level1>tax exceptions</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>For situations in which the derived tax code is incorrect, you
		can define tax code exceptions. A tax code exception is a set of transaction
		details for which you define a tax code and/or tax country and business partner
		tax country other than the values that result from the standard tax code
		derivation.</Paragraph>
      <Paragraph>For example, if you want to use a specific tax code for purchase
		transactions with a specific <Link href="/baanerp/tc/glossary/glossary#000424" role="glossary">tax classification</Link> or a specific ship-from country and
		delivery terms, you can define a tax code exception.</Paragraph>
      <ProcedureList>
         <ListIntro>To define tax code exceptions, take the following steps:</ListIntro>
         <ListItem>In the <GUIRef href="/baanerp/tc/tax/tctax0170m000" role="session">Company Sets (tctax0170m000)</GUIRef> session, define one or a number of <Link href="/baanerp/tc/glossary/glossary#000420" role="glossary">financial company sets</Link>.</ListItem>
         <ListItem>
            <Paragraph>In the <GUIRef href="/baanerp/tc/tax/tctax0171m000" role="session">Companies by Company Set (tctax0171m000)</GUIRef> session, add financial companies to the
			 company set. Ensure that each financial company belongs to only one financial
			 company set.</Paragraph>
            <Paragraph>To define the tax exceptions for a single financial company,
			 create a company set that contains only one company.</Paragraph>
         </ListItem>
         <ListItem> 
            <List>
               <ListIntro>For the financial company set, define the tax exceptions
				in one of the following ways:</ListIntro>
               <ListItem>For individual countries, use the <GUIRef href="/baanerp/tc/tax/tctax1100m000" role="session">Tax Exceptions by Country (tctax1100m000)</GUIRef> session.</ListItem>
               <ListItem> 
                  <List>
                     <ListIntro>For a number of countries for which the same
					 exceptions apply, use the following sequence of sessions:</ListIntro>
                     <ListItemHead>
                        <GUIRef href="/baanerp/tc/tax/tctax0120m000" role="session">Country Sets (tctax0120m000)</GUIRef>
                     </ListItemHead>
                     <ListItem>Define the <Link href="/baanerp/tc/glossary/glossary#000350" role="glossary">tax country groups</Link>.</ListItem>
                     <ListItemHead>
                        <GUIRef href="/baanerp/tc/tax/tctax0121m000" role="session">Countries by Country Set (tctax0121m000)</GUIRef>
                     </ListItemHead>
                     <ListItem>Add countries to the tax country group.</ListItem>
                     <ListItemHead>
                        <GUIRef href="/baanerp/tc/tax/tctax1101m000" role="session">Tax Exceptions by Country Set (tctax1101m000)</GUIRef>
                     </ListItemHead>
                     <ListItem>Define the tax exceptions for the country group.</ListItem>
                  </List>
               </ListItem>
            </List>
         </ListItem>
         <ListItem>In the <GUIRef href="/baanerp/tc/tax/tctax0100m000" role="session">Tax Parameters (tctax0100m000)</GUIRef> session, ensure that you select <GUIRef href="/baanerp/tc/domains/tax.src1#exception" role="option">Exceptions by Country</GUIRef> in the <GUIRef href="/baanerp/tc/tax/tctax0100m000#tctax000.sro1" role="manual">Search Sequence 1</GUIRef> field.</ListItem>
         <ListItem>Use the <GUIRef href="/baanerp/tc/tax/tctax8100m000" role="session">Test Tax Model (tctax8100m000)</GUIRef> session to test the resulting tax code and tax country
		  in various situations, and make the necessary adjustments.</ListItem>
      </ProcedureList>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000033" role="manual">To use tax codes</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000440" role="manual">To test the tax model</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000317" role="manual">Value added tax (VAT)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000105" role="manual">Sales tax</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>