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Define Tax Jurisdictions

In this activity, you specify the tax jurisdiction code per tax calculation procedure.

The tax jurisdiction code consists of up to four parts depending on the tax jurisdiction code structure for the relevant calculation procedure: the state code, the county code, the city code, and a local code component. The system uses these component parts to determine the tax rate for each tax authority.

Requirements

You must have already determined the allowed length of the tax jurisdiction code. See the activity Specify Structure for Tax Jurisdiction Code for more information.

Activities

1. Enter the name of the calculation procedure which requires a tax jurisdiction code. Press the F4 key to display a list of all the procedures defined in the standard system.
2. Enter the tax jurisdiction code for state, county, city and local code component.
3. Set the indicators for determining the tax base and cash discount base for the country code.

Additional information

If tax is calculated using an external tax system, then an entry is only to be included at the upper level to determine the tax base or cash discount base at the "State" level.
If such an entry does not exist for a state, the company code setting for the tax base/cash discount base is used.