Ebusiness Tax

Setup Steps

By
Parasuraman
Project Manager
Tech Mahindra
Qatar

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 Creating a Tax Regime

1. Navigate to the E-Business Tax Home Page

 (N) Setup > Tax > E-Business Tax Home > Tax Configuration (Expand)

2. Navigate to the Create Tax Regime page.
 (N) Create Tax Regime: Go To Task

3. Enter a new tax regime based on the following information:
 (B) Create
Field US Sales and Use Tax
Tax Regime Code and Name PKFBR
Regime Level Country
Country Name India
Effective From 13-Jan-1997
 YYYY = Current
year
Effective To Blank

4. Enter tax regime controls:

Field PKFBR
Allow Tax Recovery Yes
Allow Override and Entry of Yes
Inclusive Tax Lines
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes

5. Enter tax regime defaults:

Field PKFBR
Tax Currency PKR
Minimum Accountable Unit 1
Rounding Rule Nearest / up
Tax Precision 0

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Tax Regime

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 Creating a Tax

8. Navigate to the Create Taxes page.

 (N) Create Tax: Go To Task

9. Create a new tax based on the following information:
 (B) Create
Fields Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration
Owner
Tax and Tax Name GST
Tax Type SALES_TAX
Effective From 13-JAN-1997
 YYYY = Current
year
Effective To Blank
Geography Type and Parent Country
Geography Type
Parent Geography Name INDIA
Exchange Rate Type Corporate
Reporting Tax Authority and FEDERAL BOARD OF
Collecting Tax Authority REVENUE
Applied Amount Handling Recalculated

10. Enter Tax Rate Controls and Defaults

 (B) Create
Fields Data
Allow Tax Inclusion Standard Non-Inclusive
Handling
Allow override entry of inclusive tax Yes
line
Allow Tax Rounding Override Yes

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10a. Enter Tax Rate (Tax Accounts Controls)
 (B) Create
Fields Data
Tax Accounts Creation Method Create Tax Accounts

10b. Enter Tax Rate (Tax Exceptions / Exceptions Controls)

 (B) Create
Fields Data
Allow Tax Exceptions Yes
Allow Tax Exemptions Yes
Tax Exemptions Creation Method Creation Tax Exemptions

10c. Enter Tax Rate (Tax Recovery Controls)

 (B) Create
Fields Data
Allow Tax Recovery Yes

11. Enter Tax Accounts

 (B) Create
Fields Data
Ledger Yes
Operating Unit Yes
Tax Recoverable 01.000.000.00.450630002.0000000.000
/Liability

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Create Tax

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© aslam.pk. All rights reserved. 2009.
 Tax Accounts

Creating a Tax Status

12. Navigate to the Create Tax Status page.

 (N) Create Tax Status: Go To Task

13. Create a new tax status based on the following information:
 (B) Create
Field Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration
Owner
Tax GST
Tax Status Code and Name GST
Effective From 01-JAN-YYYY
 YYYY = Current
year
Effective To Blank
Set as Default Tax Status Yes
Default Status Effective From 01-JAN-YYYY
 YYYY = Current
year
Default Status Effective To Blank

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 14. Enter Tax Rate Controls and Defaults
 (B) Create
Fields Data
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes
Allow Tax Rate Override Yes
Default Recovery Settlement Immediate

Tax Status

Creating a Tax Jurisdiction

18. Navigate to the Create Tax Jurisdiction page.

 (N) Create Tax Jurisdiction: Go To Task

19. Create a new tax jurisdiction based on the following information:
 (B) Create
Field Data
Tax Jurisdiction Code and Name GST_FBR_JUR
Tax Regime Code PKFBR
Tax GST
Geography Type Country
Effective From 01-JAN-YYYY
 YYYY = Current year
Effective To Blank

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 Geography Name India
Parent Geography Type Country
Parent Geography Name India
Set as Default Tax Jurisdiction Yes
Default Effective From 01-JAN-YYYY
 YYYY = Current year
Default Effective To Blank
Precedence Level
Collecting Tax Authority and FEDERAL BOARD OF REVENUE
Reporting Tax Authority

Tax Jurisdiction

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 Create Tax Rate for Jurisdiction for Taxable and None Taxable

a. Taxable Tax Rate

20. (B) Apply.

Creating a Tax Rate (Taxable)

21. Navigate to the Create Tax Rate page.

 (N) Create Tax Rate: Go To Task

22. Create a new tax rate based on the following information:
 (B) Create
Field Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration
Owner
Tax GST
Tax Status Code GST
Tax Rate Code STANDARD
Rate 15%
Effective From 01-JAN-YYYY
 YYYY = Current
year
Effective To Blank

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23. Enter tax rate details:
 (I) Rate Details
Fie ld US Sales and Use Tax
Tax Rate Name and Description TAXABLE
Set as Default Rate No
Default Effective From 01-JAN-YYYY
 YYYY = Current year
Default Effective To Blank
Default Recovery Rate Code Standard
Recovery Type Standard
Default Recovery Settle ment Immediate
Allow Tex Inclusion Standard Non-Inclusive Handling
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes

24. Enter Tax Accounts

 (B) Create
Fields Data
Ledger Yes
Operating Unit Yes
Tax Recoverable 01.000.000.00.450630002.0000000.000
/Liability

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Rate Detail of Tax Rate

Enter Tax Accounts for Tax Rate

Enter Ledger and Press Create Button

Creating a Tax Rate (None-Taxable)

25. Navigate to the Create Tax Rate page.

 (N) Create Tax Rate: Go To Task

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26. Create a new tax rate based on the following information:
 (B) Create
Field Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration
Owner
Tax GST
Tax Status Code GST
Tax Rate Code STANDARD
Rate 15%
Effective From 01-JAN-YYYY
 YYYY = Current
year
Effective To Blank

27. Enter tax rate details:

 (I) Rate Details
Field US Sales and Use Tax
Tax Rate Name and Description NONE TAXABLE
Set as Default Rate No
Default Effective From 01-JAN-YYYY
 YYYY = Current year
Default Effective To Blank
Default Recovery Rate Code Standard0
Recovery Type Standard0
Default Recovery Settlement Immediate
Allow Tex Inclusion Standard Non-Inclusive Handling
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes

28. Enter Tax Accounts

 (B) Create
Fields Data
Ledger Yes
Operating Unit Yes
Tax Recoverable 01.000.000.00.450630002.0000000.000
/Liability

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Zero Rated Tax for None Taxable

Enter Tax Rate as follows

And Enter the Tax Accounts as previous

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29. Create a new tax rate based on the following information: (100% Rate for Taxable)
 (B) Create
Field Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration
Owner
Tax GST
Rate Type Recovery
Tax Recovery Rate Code STANDARD
Recovery Type 15%

30. Create a new tax rate based on the following information:

 (B) Create
Field Data
Percentage Recovery Rate 100
Effective From 01-JAN-YYYY
YYYY = Current year
Set as Default No

31. Tax Account (Refer to ..Previous Tax

Accounts) Tax Recovery Rate Standard

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32. Create a new tax rate based on the following information: (0% Rate for Non-Taxable)
 (B) Create
Field Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration
Owner
Tax GST
Rate Type Recovery
Tax Recovery Rate Code STANDARD0
Recovery Type 15%

33. Create a new tax rate based on the following information:

 (B) Create
Field Data
Percentage Recovery Rate 0
Effective From 01-JAN-YYYY
YYYY = Current year
Set as Default Yes

34. Tax Account (Refer to ..Previous Tax

Accounts) Tax Recovery Rate for Standard0

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 Define Tax Rules

35. Navigate to the Tax Rules window

 (N) Create Tax Rules: Go To Task
Field Data
Configuration Owner Global Configuration
Owner
Tax Regime Code PKFBR
Tax GST

Press Go Button

36. Set the Tax Rules as Follows:

Determine Place of Supply

  (I) Set Default

  Rule Type Default: Bill From
 (B) Apply

Determine Tax Applicability:

  (I) Set Default
  Rule Type Default: Not Applicable
 (B) Apply

Determine Tax Registration

  (I) Set Default
  Rule Type Default: Bill From Party
 (B) Apply

Note: The Determine Tax Status and Determine Tax Rate do not allow update, both default
to XXAP US Sales

Determine Taxable Basis:

  (I) Set Default
  Rule Type Default: STANDARD_TB
 (B) Apply

Calculate Tax Amounts:

  (I) Set Default
  Rule Type Default: STANDARD_TC
 (B) Apply

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 Tax Rules

Enable Tax for Transactions

37. Navigate to the Tax window

 (N) Create Tax : Go To Task

38. Find the Tax you created earlier.
  Country = India
  Tax Regime = PKFBR
 Tax = GST

39. (B) Find.

40. Select the tax and click (I) Update.

41. Ensure the tax is available for transactions.

 Make Tax Available for Transactions = Checked

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Advanced Setup Option
To enable tax with Tax Classification Code, Following Setup Step needs to be completed.

42. Tax Determining Factors STCC is set by default defined and required no changes. It
uses Transaction Input Factor.
43. Tax Determining Factor Sets STCC is also defined and required no changes.
44. Tax Condition Sets require to be created for Taxable and None Taxable.

45. Navigate to the Tax Condition Sets window (For Taxable)

Field Data
Tax Condition Set STCC_STD
And
Condition Set Name
Determining Factor Set Name STCC
And
Determining Factor Set
Country Blank
46. Tax Condition
Field Data
Determining Factor Class Transaction Input Factor
Determining Factor Name Tax Classification Code
Value/From Range Taxable

Create Tax Condition Sets as STCC_STD

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47. Navigate to the Tax Condition Sets window
Field Data
Tax Condition Set STCC_STD0
And
Condition Set Name
Determining Factor Set Name STCC
And
Determining Factor Set
Country Blank
48. Tax Condition
Field Data
Determining Factor Class Transaction Input Factor
Determining Factor Name Tax Classification Code
Value/From Range Non Taxable

Create Tax Condition Sets as STCC_STD0

When creating Tax Condition Sets Please do not select Country

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49. Updating the Tax Rules

50. Navigate to the Tax Rules window

 (N) Create Tax Rules: Go To Task
Field Data
Configuration Owner Global Configuration
Owner
Tax Regime Code PKFBR
Tax GST

Press Go Button

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51. Select Direct Tax Rate Determination and Press Expert Rule Entry Button

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52. Navigate to the Tax Rules window
53. Step 1 of 3
Field Data
Rule Code and Name GSTSTCC RULE
Effective From 01-JAN-YYYY
YYYY = Current year
Determining Factor Set STCC
After Updating information Press Next

54. Step 1 of 3
Field Data
Condition Set Code and Name STCC_STD
Order 1
Status Result GST
Rate Result Taxable
Enabled Yes

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55. Press Button Add Another Row
56. Step 1 of 3
Field Data
Condition Set Code and Name STCC_STD0
Order 2
Status Result GST
Rate Result Non Taxable
Enabled Yes

After Updating information Press Next

57. Selectthe Rule Order 1 and Check the Enable

58. Press Finish

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Same setup required for Excise Tax

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Now Tax Setup is complted and Use Tax Classification in AP / AR. Select Taxable for 15% and 1%.
Leave Blank for Non Taxbale or Select Non Taxble in Tax Classification

© aslam.pk. All rights reserved. 2009.

© aslam.pk. All rights reserved. 2009.