Tax Calculation – An overview

Introduction

The Tax Calculation component caters to need of calculating tax for various tax scenarios in different countries. Each country has varied tax regulations and practices. This component provides a common framework to calculate tax and at the same time meet the specific requirements of different countries. Tax is calculated for all those transactions of purchase and sales that attracts tax. This component also meets specific transaction needs. For example, invoicing component need both calculation of tax and tax postings while components like PO require only calculation of tax, as account postings are not required to be done at that time.

This component also stores tax related details for further use in Tax Settlement component and also supports all other requesting component to validate or fetch the relevant data. 

Feature Highlights

• Support for specifying the various tax type and tax communities applicable for the company and provision to set default tax region at Organization Unit level.

• Support for specifying whether the:

• Default tax calculation is desirable or not during transaction creation for a Tax Type, Tax Community.

• Default values for tax category and tax class is to be used during transaction creation for a tax type and tax community or the same should be derived.

• Tax is inclusive or exclusive of Transaction amount for all Transactions.

• Tax Calculation is at document level or at line level.

• Provision to map rule id to a tax type, tax community, transaction type combination.

• Provision to map transaction types to a tax type.

• Support for Tax calculation in, Quotation, Purchase order and Goods Receipt, Invoice, Debit / Credit Note, Payment / Adjustment Voucher based on the tax types set at the company process.

• Support for viewing Tax calculated in Quotation, Purchase Order, Goods Receipt, Invoice, Debit/Credit Note, Payment Voucher and Adjustment Voucher in the Purchase / Payables BFG.

• Provision to modify the tax related details stored during creation of Purchase order either at the Goods receipt stage or at the invoicing stage.

• Support for Tax calculation in respect of Sundry Payment and Receipt, Recurring Payment / Receipt Transactions and Journal Vouchers originating in the Book Keeping component. (Sundry Payment is part of Payables Management. Sundry Receipts is part of Receivables management.)

• Support for viewing Tax calculated for Sundry Payment and Receipt Transactions, Recurring Payment / Receipt Transactions and journal voucher transactions originating in the Book Keeping component.

• Support for Tax calculation in respect of Sale Order, Quotations, Invoices (Order based / Direct / Prepayment), Debit / Credit Notes, Stock Transfer Notes, Customer Balance Adjustment originating in the Sales and Receivables BFG.

• Support for viewing the Tax calculated in respect of Sale Order, Quotations, Invoices (Order based / Direct / Prepayment), Debit / Credit Notes, Stock Transfer Notes, Customer Balance Adjustment originating in the Sales and Receivables BFG.

• Provision to modify the tax related details entered in the Quotation either at the Sale Order stage or at the invoicing stage.

• Provision to capture party code for the transactions, Sundry Receipts, Sundry Payments and Journal Voucher.

List of Activities