To calculate sales and use tax in the United States, you must assign one of the three calculation procedures, namely, TAXUSJ, TAXUS, and TAXUSX. The calculation procedure you choose depends on your specific business requirements.

When you create a company code using the template for the United States, the system automatically creates the following calculation procedures.

• TAXUS - Based on tax codes, but not jurisdiction codes (Non-jurisdiction method)
• TAXUSJ - Based on tax jurisdiction method with tax codes (Jurisdiction method)
• TAXUSX - Used in combination with third-party tax calculation packages (TAXWARE International and Vertex)

A calculation procedure is assigned by country. The relationship is that a country has only one calculation procedure but a calculation procedure can be assigned to many countries.