| To set up tax codes by country |  |
| To set up tax codes for value added tax and sales tax, take the following steps: In the Tax Codes (tcmcs0137m000) session, define a tax code for each type of tax, including tax types with zero tax amounts. In the Tax Codes by Country (tcmcs0136s000) session, set up the tax details, among others: Assign the tax codes to the home country of the financial company. Specify whether the tax consists of a single tax rate or of multiple tax rates, for example, for sales tax. Optionally link a tax authority to the tax code. For details, refer to Tax authorities. If required, add a text to the tax codes containing the reference to the applicable tax law chapter. ERP LN prints the text on invoices with this tax code. For consumption tax, enter the details as described in Consumption tax. For a singular tax code, define the tax rate in the Single Tax Rates (tcmcs0132m000) session. You can choose Single Tax Rates from the appropriate menu of the Tax Codes by Country (tcmcs0536m000) overview session. For multiple tax codes, for example, for sales tax, take the following steps: Specify the details in the Multiple Tax Code Lines (tcmcs0535m000) session. You can choose Multiple Tax Rates from the appropriate menu of the Tax Codes by Country (tcmcs0536m000) overview session. Define the tax rates of each tax code line in the Multiple Tax Rates (tcmcs0133m000) session. You can choose Multiple Tax Rates from the appropriate menu of the Multiple Tax Code Lines (tcmcs0535m000) overview session. Specify the ledger accounts to which ERP LN must post the tax amounts, for each financial company. In each financial company of your system, use the following sessions: Posting Data for Single Tax Codes (tfgld0571m000) for single tax codes. Posting Data for Multiple Tax Codes (tfgld0570m000) for multiple tax codes. If you prepare tax declarations based on a tax declaration master, you must also define a tax settlement tax code for the country. ERP LN links the Tax Settlement tax code to the payments you make to the collection office. On the tax analysis reports, this tax code represents the tax payments. Approve the tax codes Ensure that all the tax code details are correct, and in the Tax Codes by Country (tcmcs0136s000) session, select the Approved check box. ERP LN performs a consistency check on the tax code details. Before you can add a tax code to a group tax code or test the tax model, you must approve the tax codes. ERP LN can only link approved tax codes to the transactions. After you approve the tax code, you can no longer change the following details: Kind of Tax Tax Type Singular Tax Expensed Purchase Tax Group Tax Tax Category Include In VAT Book Continue with To set up the tax rates. Related topics To set up tax registration |