| # Tax Parameters (tctax0100m000) Use this session to define the parameters that control how your company registers and reports tax amounts. Tax determination method In the Search Sequence Tax Libraries area, you must select these details: Tax Exempt Level The method you use to set up tax exemptions. For details, refer to Tax exemption setup methods. Search order The order in which LN uses various methods to determine the tax code and the tax country of taxable transactions. For details, refer to Search Order Tax Defaults. In the Search Order 1 field, select the method that applies to your transactions. If destination sales tax applies to most transactions, select Destination Sales Tax. If you model tax exceptions or exemptions, select the corresponding option. In all other situations, select Standard. If the order origin is Purchase and you use an Exemptions search order, LN first checks whether you defined an exemption for the warehouse. Note You can only select Destination Sales Tax if the Destination Sales Tax Applicable check box is selected in the COM Parameters (tccom0000s000) session. Tax conditions In the Ignore as Tax Condition area, you can select a number of criteria to be ignored when LN determines the tax code and tax country. You can select these criteria: The delivery terms. The department. The country of the department's address is not considered to determine the tax code and tax country. The item on the order. If you have linked a tax code to the item, LN uses the item's tax code provided that tax code details exist for the tax code in the determined tax country. Related topics Overview of tax handling Setting up tax registration To set up tax exemptions Tax registration in a foreign country Tax parameters - overview Introduction Date The date and time when the parameters become effective. The parameters are valid up to the effective date of a more recent parameter setting. By default, LN fills this field with the date and time at which you changed and saved the parameter settings. Description The description of the parameter set. For example, you can indicate why you change the parameters. Financial Company The financial company for which the parameters are valid. In a multicompany structure, if this field is empty the parameters apply to all the financial companies. Standard Tax Handling Search Sequence Tax Libraries Tax Exempt Level The tax exemption setup method. Select Extended if you want to specify tax exemption certificates and exempt reasons, and if you set up destination sales tax with or without a tax provider. For details, refer to Tax exemption setup methods. Select Limited in these situations: You indicate on the order headers whether the order is exempt from tax. You do not want to set up tax exemptions. Related topics To set up tax exemptions Search Order 1 The first method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. Select the method that applies to your transactions. For details, refer to Search Order Tax Defaults. If LN does not find the tax details with this method, LN continues the search according to the method selected in the Search Order 2 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Order 2 The second method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Order 1 field. If LN does not find the tax details with this method, LN continues the search according to the method selected in the Search Order 3 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Order 3 The third method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Order 2 field. If LN does not find the tax details according to this method, LN continues the search according to the method selected in the Search Order 4 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Order 4 The fourth method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Order 3 field. If LN does not find the tax details according to this method, LN continues the search according to the method selected in the Search Order 5 field. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Order 5 The fifth method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. LN uses this method if no tax code and tax country are found with the method selected in the Search Order 4 field. If LN does not find the tax details according to this method, continues the search according to the method selected in the Search Order 6 field. If the Search Order 6 field is not available, LN returns an error message. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Search Order 6 The sixth method LN uses to determine the tax code, the tax country, and the business partner's tax country of taxable transactions. For details, refer to Search Order Tax Defaults. The sixth method is only available if you set up destination sales tax. LN uses this method if no tax code and tax country are found with the method selected in the Search Order 5 field. If LN does not find the tax details according to this method, LN returns an error message. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Unused concepts in Tax Handling. Options Use Tax Numbers of other Financial Companies If this check box is selected, and the tax country of a transaction changes, LN can replace the tax number on the transaction. LN can replace your tax number on, for example, order acknowledgements and sales invoices with the tax number of the financial company in the new tax country. If this check box is cleared, LN always retrieves your tax number from the financial company in the country of the sales office, purchase office, or service department of the order. Related topics Tax registration in a foreign country BP Tax ID for Purchase Transactions is Mandatory If this check box is selected, LN registers always value added tax on purchase orders if the business partner's tax number is not available. If this check box is cleared, LN searches the tax code setup data to derive the tax code and calculate the tax amount, even if the business partner's tax number is not yet available. If you create a purchase order for a new business partner, you do not know the business partner's tax number until you receive the purchase invoice. To avoid tax registration for such purchase orders, you can clear this check box. Allow Simplified Triangulation between own Entities If this check box is selected, LN uses the ICT ABC Transactions tax code for triangular trade transactions between enterprise units of your company. If you select the Use Tax Numbers of other Financial Companies check box, you can select this check box. In situations in which the simplified triangular trade procedure applies, your organization does not have to be registered for tax in the country of the customer. You can define the ICT ABC Transactions tax code in the Tax Handling (tctax0138m000) session. Related topics Tax registration in a foreign country Triangular trade Tax Number Webservice URI The "internal" webservice location associated with the tax number. Fiscal ID Webservice URI The "internal" webservice location associated with the fiscal ID. Update Direct Delivery Sales Order Tax If this check box is selected, LN updates the tax data of a direct delivery sales order based on the tax data of the corresponding purchase order. If you select this check box, if you change the tax data of the purchase order, LN automatically changes the tax data of a related sales invoice. You can select this data: Only for ABC Transactions For triangular trade transactions, LN updates the tax data of a direct delivery sales order. Always If you change the tax data of the purchase order, LN automatically changes the tax data of a related sales invoice. Never If you change the tax data of the purchase order, LN does not change the tax data of a related sales invoice. Not Applicable If you change the tax data of the purchase order, LN does not check whether related sales invoices exist. You can define the ICT ABC Transactions tax code in the Tax Handling (tctax0138m000) session. Important! This field only applies to transactions within the European Union. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Update direct delivery sales order tax Related topics Tax registration in a foreign country Triangular trade Tax Rounding on Internal Invoices Tax rounding Default value Not Applicable Note This parameter setting only applies to: Invoices created via Invoicing. Internal invoices generated in the Generate Self-Billed/Internal Purchase Invoices (tfacp2290m000) session. This parameter setting does not affect tax calculation on regular invoices in Accounts Payable and Accounts Receivable. Tax Exception Modeling Tax Exception Lookup Sequence Lookup Order 1 Use this field to indicate the order in which LN must retrieve tax exceptions. Lookup Order 2 Use this field to indicate the order in which LN must retrieve tax exceptions. Lookup Order 3 Use this field to indicate the order in which LN must retrieve tax exceptions. Ignore as Tax Condition Terms of Delivery If this check box is selected, you cannot use the delivery terms as a criterion for tax exceptions in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Department If this check box is selected, you cannot use the department as a criterion for tax exceptions in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Item If this check box is selected, you cannot use the item as a criterion for tax exceptions in the Tax Exceptions by Country (tctax1100m000) and the Tax Exceptions by Country Set (tctax1101m000) sessions. Options Step Size for Exceptions The number by which LN increases the generated line numbers in the Model Tax Exceptions by Country (tctax1100m000) and the Model Tax Exceptions by Country Group (tctax1101m000) sessions. Customer and Supplier List Italy Mandatory Tax Number If this check box is selected, the mandatory tax number is included in the list. Mandatory Fiscal ID If this check box is selected, the mandatory fiscal ID is included in the list. Max Number of Lines per File Specify an upper limit for the number of customers and suppliers on the list. |