Sales Tax Codes - Setup Window - SAP Documentation

Sales Tax Codes - Setup Window

Use this window to define sales tax codes.

To open the window, choose Administration Setup Financials Tax Sales Tax Codes .

Sales Tax Codes – Setup Window

Tax Rate
Displays the cumulative rate of the tax code, as the sum of the rates appears in the Effective Rate column.

Freight
Specifies that this tax code applies to freight.

Single Item Tax
Select this checkbox to apply the tax code calculation rule at the item level. Calculation Rule: If you do not select the checkbox, the system applies a threshold (Min. Taxable Amount, Max. Taxable Amount, or Flat Tax Amount), calculates tax separately for each sales jurisdiction present in the document, and then distributes the tax proportionally back to the lines. If you select the checkbox: For marketing documents, the system applies a threshold, calculates tax separately for the lines with the same sales jurisdiction and item code, and then distributes the tax proportionally back to the lines. (This also applies to the freight of the line.) For manual journal entries, posting templates, recurring entries, and service type marketing documents, the system applies a threshold and calculates tax separately for each line. Note If all lines of the fields Min. Taxable Amount, Max. Taxable Amount and Flat Tax Amount are blank; this checkbox is disabled. The system calculates tax separately for each sales jurisdiction. If freight is assigned in the header of the document, you cannot use Single Item Tax for this freight. End of the note.

Inactive
When the checkbox is selected, you cannot select the corresponding tax code in any window or add any document with an inactive tax code. It is deselected by default.

Type
Click to choose the required jurisdiction type.

Code
Press `TAB` and in the displayed window choose the required code. Note Only the codes related to the selected jurisdiction are available. End of the note.

Name
Name of the selected code.

Tax on Tax
Specify a jurisdiction code to apply to the tax on tax calculation. Code from the previous line All – SAP Business One applies tax on tax calculation to all the lines to this tax code Blank – No tax on tax calculation is done

Rate
Tax rate defined for the selected code.

Effective Rate
Displays the total tax percent, depending on the jurisdiction types and codes you choose, and whether or not tax on tax calculation was applied.

Min. Taxable Amount, Max. Taxable Amount
Displays the tiered taxable amounts and the corresponding rate(s) you defined for a specific jurisdiction

Flat Tax Amount
Displays the amount of flat tax you defined for a specific jurisdiction

Sales Tax Account, Purchasing Tax Account, Use Tax Account
Display the accounts linked to each tax code in the table. Note The field Use Tax Account is not available for users in Brazil and India. End of the note.

More Information

Sales Tax Codes - Setup: Canada & USA