Set Function Parameters

This page allows you to set the default values to a host of functions. The function defaults are used in tax calculation. Some function defaults are applied to the purchase cycle while others are applied to the sales cycle; some others are common to both.

Function defaults are set for a tax type, tax community combinations.

Select the “Set Function Parameters” link under the “Tax Calculation” business component.

The “Set Function Parameters” page appears.

Enter the details in the following fields:

Tax Type

Use the drop-down list box to select the required tax type to set function default. Tax type is a code that indicates the type of tax, for example, VAT, and TDS.

The list is filled with all available tax types and the system displays the first value. On selecting a tax type, appropriate values applicable to the selected tax type are listed in the tax community field, and the function default fields.

Tax Community

Use the drop-down list box to select the required tax community. Tax community is the government authority, which administrates the tax laws, example, India, EU, and USA.

On launch of the page the system displays first available value for the tax type. On choosing a tax type the system fills the field with all available values of tax community and displays the first value.

Select the required functions in the following fields:

Default TAX Category For Purchase Cycle	Use the drop-down list box to select the tax category to default. This parameter is set to default the tax category for all purchase cycle transactions. If a value has already been set for the tax type, tax community the value will be displayed. If the value is not set the first loaded value will be displayed.
Default TAX Category For Sales Cycle	Use the drop-down list box to select the required value. This parameter is set to default the tax category for all sales cycle transactions. If a value has been already set for the tax type, tax community, the same is displayed; else the first value in the field is displayed.
Default TAX Class For Purchase Cycle	Use the drop-down list box to select the required value. This parameter is set to default the tax class for all purchase cycle transactions. If a value has been already set for the tax type, tax community, the same is displayed; else the system displays the first loaded value in the field.
Default TAX Class For Sales Cycle	Use the drop-down list box to select the required value. This parameter is set to default the tax class for all sales cycle transactions. If a value has already been set for the tax type, tax community, the same is displayed; else the first available value in the field is displayed.
Default Option For Purchase Cycle	Use the drop-down list box to select the required value. If a value has been already set for the tax type, tax community, the same is displayed. The two options are ‘Inclusive’ and Exclusive.
	Inclusive: indicates that the total transaction is inclusive of the tax amount
	Exclusive: indicates that the transaction amount is exclusive for tax amount. When the Tax type is Excise then the combo will be loaded with only “Exclusive”.
Default Option For Sale Cycle	Use the drop-down list box to select the required value. If a value is already set for the tax type, tax community, the same is displayed; else the system value is displayed. The two options are “Inclusive” and “Excusive”.
	Inclusive: indicates that the total transaction is inclusive of the tax amount
	Exclusive: indicates that the transaction amount is exclusive for tax amount. When the Tax type is Excise then the combo will be loaded with only “Exclusive”.
Basis For Tax Calculation For Sales Cycle	Use the drop-down list box to select the type of value. The combo is loaded with “Transaction Rate” and “Assessable Rate” for tax type Excise. The tax for all transactions in sales cycle will be calculated based on the option selected in the combo.
Accounting Basis for Sales Cycle	Use the drop-down list box to select the required. The combo is loaded with “Gross” and “Net” for tax type Excise and VAT. The tax amount for all the transactions will be included in Revenue based on the value selected.
Tax Correction Apportionment Basis	Use the drop-down list box to select the required value. If a value has been already set for the tax type, tax community, the same is displayed; else the first loaded value is displayed.
	If the value is set as “First Line Item”, the difference between the computed and corrected tax is apportioned to the first line item.
	If the value is set as “All Line Item”, difference between the computed and corrected tax is apportioned to all the line items. When the Tax type is Excise then the combo will be loaded with only “All Line Item”.
Distinct Account Type For TCDs	Use the drop-down list box to select the required option. The system displays values applicable to the tax type & community. The two values available are Yes and No.
	If “Yes”, is selected, the tax on tcds will be posted to the account codes created for the respective tcd account type.
	If “No” is selected, the tax on tcds will be posted to the account type of the item and the account types for TCDs will not be available for account rule definition.
Tax Round Off At	Use the drop-down list box to select the required value. If a value has been already set for the tax type, tax community, the same is displayed; else the first loaded value is displayed.
	If “Document Level” is selected, the round off will be at the transaction level.
	If ‘Line Level’ is selected, the round off will be for individual line item in a transaction.
Tax Round Off Value	Use the drop-down list box to select the required value. If a value has been already set for the tax type, tax community, the same is displayed; else the first loaded value in the field is displayed. If set to ‘1’, the round off should happen to the nearest whole number, if set to ‘0.10’ then the round off should happen to the nearest tens and if it is set to ‘0.05’ then the round off should happen to the nearest fives.
Default Taxable (%)	Enter the required percentage (Integer). This parameter is used to default Taxable percentage for all purchase transactions. You can modify it. If the tax type is ‘Vat’, default taxable percentage is regarded as a deductible percentage. (For the given percentage, the tax amount will be taken to tax account and the balance to the expense account)
Automatic Payment Voucher Generation	Use the drop-down list box to select the required value. The available options are “Yes” and “NO”. The system automatically creates sundry payment voucher for the tax payment if “Yes” is chosen. If a value has already been set for the tax type-tax community, the same is displayed.
Allow Creation of Documents in Draft Status	Use the drop-down list box to allow creation of documents in draft status. The available options are “Yes” and “No”.
Allow Varied Input Credit Instalments on Capital Purchases	Use the drop down list box to specify whether to allow varied input credit instalments for capital purchases or not.
Percentage of Utilization of Service Tax Input Credit during Declaration	The percentage of Utilization of Service Tax Input Credit during declaration. (Integer)
Auto SetOff of CONSINPTAX with CONSOUTTAX during Declaration	Use the drop down list box to select whether balance in Consolidated Input tax can be adjusted for Consolidated output tax.
Provisional Credit for Service Tax Payable by Service Receiver	If the Input Credit on Service Tax Payable by the Service Receiver, under Reverse Charge mechanism, is availed on booking the invoice, then the Parameter value should be set as 'No'. If the Input Credit has to be availed during payment, the parameter value should be set as 'Yes'.

Note: “Percentage of Utilization of Service Tax Input Credit during Declaration", "Auto SetOff of CONSINPTAX with CONSOUTTAX during Declaration” and "Provisional Credit for Service Tax Payable by Service Receiver" fields would be visible only for the Tax Type – SER and Tax Community – INDIA.

Default Tax in Stock Trfr. Receipt from Stock Trfr. Note

Use the drop down list box to select whether the Tax calculation in Stock Transfer Note to be defaulted in Stock Transfer Receipt or Note.

Note: This control would be visible only for the Tax Type - Excise and Tax Community - India.

Click the “Set Function Parameters” pushbutton to set the function defaults for the tax type tax community combination.

On clicking the set button the system validates the values entered and saves the function defaults and the screen is refreshed with the details set.