Tax Account Definition

Create Tax Account Definition – A summary of the activity

This activity allows you to create tax account definition. Creating tax account includes defining accounts for automatic defaulting of Tax account codes during purchase, sale and other transactions. The accounts are defined in the “Accounting Setup” business component.

While creating, account code definition is done only for Effective From Date. The Valid Upto Date is left open ended and is specified only while deleting the account code (i.e.) while closing the account code. ARD will return the Account codes for a particular transaction. The default cost centers, Analysis and sub analysis codes are defined in the respective components.

Getting familiar with the pages inside

Go to page…	For…
Create Tax Account Definition	Creating the tax account definition
Create Tax Additional Account Rule Definition	Creating the tax additional account rule definition

Create Tax Account Definition – An overview

This page allows you to create tax account definition. This page allows you to specify Tax details and Account code details. You can retrieve account definition details based on the tax type. You are provided with the option to map account codes either to Tax Group or Tax Code or Tax Group-Tax Code combination. The effective date from which the mapping is valid is also provided.

Create Tax Account Definition

Ø Select the “Create Tax Account Definition” link under the “Account Rule Definition” business component.

The “Create Tax Account Definition” page appears.

Ø Enter the following details in the “Tax Details” group box:

Tax Type	Use the drop-down list box to specify the required tax type. Tax types are set for the company in “Company Parameter Setup” business component.
Tax Community	Use the drop-down list to specify the community of the tax that administers the tax rules. The system retrieves and displays the tax community combo with the applicable tax community for selected tax type
Tax Category	Use the drop-down list to specify the tax category. The system retrieves and displays the tax category applicable for the selected Tax type-Tax community combination from “Tax Setup” business component.
Tax Class	Use the drop-down list box to specify the required tax Class. The system retrieves and displays the Tax Classes mapped to the selected Tax Category in “Tax Setup” business component. The system displays “ALL” on the launch of the page.
Tax Region	Use the drop-down list box to specify the required tax region. The system retrieves and displays the applicable tax region for the Tax type-Tax community selected.

The system displays the following:

Desc.

The textual description of the tax region.

Ø Enter the following detail in the “Tax Details” group box:

Tax Account Type

Use the drop-down list box to specify the type of the tax account. The system retrieves the applicable tax account type for the selected Tax type-Tax community-Tax category combination.

The system displays the following:

Desc.

The textual description of the tax account type.

Ø Enter the following detail in the “Tax Details” group box:

Finance Book

Use the drop-down list box to specify the required finance book in which the transaction is accounted. The system retrieves and displays “ALL” on the launch of the page.

Ø Enter the following details in the “Entity Details” group box:

Tax Group From	The starting code in the range of codes identifying the tax group (Alphanumeric, 10).. The system retrieves the applicable Tax group from the “Tax Rule Definition” business component.
To	The ending code in the range of codes identifying the tax group (Alphanumeric, 10).
Tax Code From	The starting code in the range of codes identifying the tax code (Alphanumeric, 10).. The system retrieves the applicable Tax code from the “Tax Rule Definition” business component.
To	The ending code in the range of codes identifying the tax code (Alphanumeric, 10).

Ø Click the “Get Details” pushbutton to retrieve the account definition details in the multiline.

Ø Enter the following details in the “Account Code Details” group box:

Account Code	The code identifying the account (Alphanumeric, 32).
	Help facility available.
Effective From Date	The date from which the account code is effective.
Cost Center	The code identifying the cost center (Alphanumeric, 10). The system checks for the validity of the entered cost center from the "Cost Setup" business component. It also checks if there exists a mapping between the entered cost center and account code.
	Help facility available.
Analysis Code	The code identifying the analysis code (Alphanumeric, 10).
	Help facility available.
Sub Analysis Code	The code identifying the subanalysis code (Alphanumeric, 10). The subanalysis code is mapped to the analysis code. The system checks for the validity of the analysis and subanalysis code from the “Account Based Budget” business component.

Ø Click the “Default” pushbutton to default the values in the “Account Definition Details” multiline.

4 The system ensures that atleast one row is selected in the multiline else, the system displays an error message.

4 The system checks ensures that atleast one of the following field is entered before defaulting - Account code or Cost Center or From Date or Analysis code or Subanalysis code.

4 The system checks for the validity of the entered account code.

4 The system checks for the validity of the entered cost center from the "Cost Setup" business component.It also checks if there exists a mapping between the cost center and entered account code.

4 The system defaults the “Account Code Details” in the respective column of the multiline.

Ø Enter the following details in the “Account Definition Details” multiline:

Tax Group	The code identifying the tax group. The system throws an error message if the entered tax group not valid.
	Help facility available.
Tax Code	The code identifying the tax code (Alphanumeric, 10). The system throws an error message if the entered tax code not valid.
	Help facility available.
Account Code	The code identifying the account code(Alphanumeric, 32). The system checks for the validity of the entered account code from the “Account Setup” business component. If the code is not valid then the system displays an error message. If the finance book value is “ALL”, then the system checks whether the code is valid for all the finance books.
	Help facility available.
From Date	The date from which the account code mapping is valid (Date Format).
Cost Center	The code identifying the cost center.
	Help facility available.
Analysis Code	The code identifying the analysis code.
	Help facility available.
Sub Analysis Code	The code identifying the subanalysis code. The subanalysis code is mapped to the analysis code.

The system displays the following in the multiline:

Tax Group Desc.	The textual description of the Tax group.
Tax Code Desc.	The textual description of the Tax code.

Ø Click the “Create” pushbutton to create tax account definition.

4 The system throws an error message if no row is selected before creation.

4 The system ensures that the Account code field is not left blank.

4 The system checks whether values are entered for Tax group or Tax code or both if the 'Tax Group definition applicable' is set to “YES”. If the “Tax group definition” is set to “NO” and Tax group field contains a value then, the system throws an error message.

4 The system ensures that entered Account Code is not referred under any Usage for the Login company in the “Tax Additional Account definition” activity.

4 Account Codes of a particular nature can only be mapped to specific account types. Refer the following table for the mapping details

Tax Type	Tax Community	Account Type	Description	Account Group	Control Account
VAT	Swiss & EU	TDVAL	TAX Deductible	Asset	INPUTTAX
		TNDVAL	TAX Not Deductible	NA	NA
		TDCHG	TAX Deductible – Charges	Asset	INPUTTAX
		NDTDVAL	Not Due Tax Deductible	Asset	INPUTTAX
		NDTDCHG	Not Due Tax Deductible – Charge	Asset	INPUTTAX
		NDTDDIS	Not Due Tax Deductible – Discount	Asset	INPUTTAX
		TNDCHG	TAX Non Deductible – Charges	NA	NA
		TDDIS	TAX Deductible – Discount	Asset	INPUTTAX
		TNDDIS	TAX Non Deductible – Discount	NA	NA
		TCVAL	TAX Collected	Liabilities	OUTPUTTAX
		NDTCVAL	Not Due TAX Collected	Liabilities	OUTPUTTAX
		TCCHG	TAX Collected – Charges	Liabilities	OUTPUTTAX
		NDTCCHG	Not Due TAX Collected – Charges	Liabilities	OUTPUTTAX
		TCDIS	TAX Collected – Discount	Liabilities	OUTPUTTAX
		NDTCDIS	Not Due TAX Collected Discount	Liabilities	OUTPUTTAX
VAT	India	TDVAL	TAX Deductible	Asset	INPUTTAX
		TNDVAL	TAX Not Deductible	NA	NA
		DTDVAL	Deferred Tax Deductible	Asset	INPUTTAX
		TCVAL	TAX Collected	Liabilities	OUTPUTTAX
Excise	India	CENREC	Cenvat Receivable	Asset	INPUTTAX
		PRCENVAT	Provisional Cenvat Receivable	Asset	INPUTTAX
		DCENREC	Deferred Cenvat Receivable	Asset	INPUTTAX
		CENSUS	Cenvat Suspense	Asset	CENSUSP
		EDPAY	Excise Duty Payable	Liabilities	OUTPUTTAX
		EDEXP	Excise Duty	Expenses	NA
		EDINC	Excise Duty on purchases	Revenue	NA
GST	Singapore	TDVAL	TAX Deductible	Asset	INPUTTAX
		TCVAL	TAX Collected	Liabilities	OUTPUTTAX
TDS	India	TDSPY	TDS Payable	Liabilities	TDSPAYABLE
		TDSRE	TDS Receivable	Asset	TDSRECEIVABLE
TCS	India	TCSPY	TCS Payable	Asset	TCSPAYABLE
		TCSRE	TCS Receivable	Liabilities	TCSRECEIVABLE
Service Tax	India	SERPY	Service Tax Deductible	Asset	INPUTTAX
		SERRE	Service Tax Collectible	Liabilities	OUTPUTTAX
		SERPPY	Provisional Service Tax Deductible	Asset	INPUTTAX
		SERNPPY	Provisional Service Tax Non Deductible	NA
		SERPRE	Provisional Service Tax Collectible	Liabilities	OUTPUTTAX
		SERNPY	Service Tax Non Deductible	NA
		SEREXP	Service Tax Expense	Expenses
		SERPEXP	Service Tax Provisional Expense	Expenses
		SERPPAY	Service Tax Provisional Payable	Liabilities	OUTPUTTAX
		SERPPY	Provisional Service Tax Deductible	Liabilities	OUTPUTTAX
CST	India	CSTPAY	CST Payable	Liabilities	OUTPUTTAX

To proceed, carry out the following

Ø Select the “Create Tax Additional Account Rule Definition” link at the bottom of the page to create the tax additional account rule definition.

Ø Select the “View Tax Account Definition” link at the bottom of the page to view the tax account definition.