Tax Number
Definition
A number assigned by the tax authorities to every person and corporation. In Colombia, the tax number is known as the número de identificación tributaria (NIT).
Use
The tax numbers are used for reporting to the tax authorities.
You maintain your own company codes' tax numbers in Customizing for Financial Accounting, under Financial Accounting Global Settings ® Company Code ® Enter Global Parameters. Choose Additional details in your company code and enter the NIT tax number in the appropriate field.
You maintain your customers’ and vendors’ tax numbers in their master records. You enter it in the field Tax code 1, which has a maximum of 16 digits.
When posting cash transactions without a customer or vendor, enter the NIT tax number in the field Reference key 3 in the document line item.
The tax number found in tax code 1 is verified by a check. The check uses every digit in a predefined formula excluding the last one. The one-digit result from the formula is then compared to the last digit. If the last digit differs, then it does not accept the tax number.
For some individuals, the NIT number does not include a check digit. In this case, you must deactivate the check by selecting Sole prop. in the customer's or vendor's master data.
When you create a company code using the template for Colombia, the system creates the tax code 1 check.
If you need to change the tax code 1 check , you maintain it in Customizing in Global Settings ® Set Countries ® Set Country-Specific Checks. Choose
Standard settings include:
Length - 16 (including the last check digit)
Checking Rule - 5
Select Other Data