From the SAP Business One Main Menu, choose  Administration Setup Financials Tax Tax Engine Configuration Tax Parameter .

The Tax Parameter - Setup window appears.

In the Code field, specify Rate as the tax parameter code, and in the Description field, describe the tax parameter.

From the Attribute dropdown list, select Rate.

To define a new attribute, in the Attribute dropdown list, choose Define New to open the Attributes - Setup window.

From the Return Value dropdown list, select Tax Amount and Base Amount.

To define a new return value, in the Return Value dropdown list, choose Define New to open the Return Values - Setup window.

To save the tax parameter, choose the Add button.

To close the window, choose the Cancel button.

From the SAP Business One Main Menu, choose  Administration Setup Financials Tax Tax Types .

The Tax Types - Setup window appears.

In the Tax Type Name field, specify BED, SED or CST as the tax type name each time you define the corresponding tax type.

From the Tax Category dropdown list, select the tax category.

To define a new tax category, in the Tax Category dropdown list, choose Define New to open the Tax Category - Setup window.

From the Tax Parameter dropdown list, select Rate. For more information about defining tax parameters, see Defining a Tax Parameter above.

To define a new tax parameter, in the Tax Parameter dropdown list, choose Define New to open the Tax Parameter - Setup window.

To save the tax types, choose the Update button.

To close the window, choose the OK or Cancel button.

From the SAP Business One Main Menu, choose  Administration Setup Financials Tax Tax Engine Configuration Tax Formula .

The Tax Formula - Setup window appears.

In the Code field, specify F_BED, F_SED, or F_CST as the tax formula code each time you define the corresponding tax formula, and in the Description field, describe the tax formula.

From the Tax Type dropdown list, select BED, SED or CST for the corresponding tax formula. For more information about defining tax types, see Define a tax type above.

The return values and attribute of this tax type appear as Formula Output and Formula Input respectively.

In the variable table fields, open the List of Tax Parameters window by choosing Tab in the empty field of the Parameter Code column, and select tax parameters for the tax formula by double-clicking the row or choosing the OK button after selecting the row.

In the formula pan on the right, define the formulas. Select variables by double-clicking the corresponding row in the variable table fields, and enter arithmetic operators either through the keyboard or the Operation field.

Check the correctness of the formula by clicking before the Formula Validation Message field. If there is no message shown, it means that the formula is correct.

Choosing the Add button checks the correctness of the formula first and saves the tax formula if the formula is correct.

To close the window, choose the Cancel button.

From the SAP Business One Main Menu, choose  Administration Setup Financials Tax Tax Engine Configuration Tax Type Combination .

The Tax Type Combination - Setup window appears.

In the Code field, specify TTC_CENVAT_CST as the code for the tax type combination, and in the Description field, describe the tax type combination.

From the Tax Type dropdown list, select BED, SED, and CST. For more information about defining tax types, see Define a tax type above.

In the Formula Code field, open the List of window by choosing Tab, and select the corresponding formula code by double-clicking the row or choosing the Choosing button after selecting the row.

To save the tax type combination, choose the Add button.

To close the window, choose the Cancel button.

From the SAP Business One Main Menu, choose  Administration Setup Financials Tax Tax Codes .

The Tax Codes - Setup window appears.

In the Code field, specify CEN_CST as the tax code, and in the Description field, describe the tax code.

From the Tax Type Combination dropdown list, select TTC_CENVAT_CST. For more information about defining tax type combinations, see Define a tax type combination above.

The tax types included in this tax type combination appear in the table: BED, SED, and CST.

In the Code field, open the List of Sales Tax Authorities window by choosing Tab, and select a code for each tax type by double-clicking the row or choosing the Choose button after selecting the row.

If you need to define new attributes for the tax type, proceed as follows:

To save the tax code, choose the Add button.

To close the window, choose the Cancel button.

From the SAP Business One Main Menu, choose  Sales - A/R Sales Quotation, Sales Order, Delivery, Return, A/R Down Payment Request, A/R Down Payment Invoice, A/R Invoice, A/R Credit Memo , or  Purchasing - A/P Purchase Order, Goods Receipt PO, Goods Return, A/P Down Payment Request, A/P Down Payment Invoice, A/P Invoice, A/P Credit Memo .

Specify the customer in the Customer field (for sales documents), or the vendor in the Vendor field (for purchasing documents), and the item in the Item No. field.

In the Tax Code field, open the List of Sales Tax Codes window by choosing Tab, and select CEN_CST. For more information about defining tax codes, see Define a tax code above.

In the toolbar, click (Form Settings...) to display the Form Settings - <Specific Document> window.

On the Table Format tab, in the row Tax Amount (LC), select the Visible checkbox and choose the OK button.

In the Tax Amount (LC) field, click the orange arrow beside the entry to display the Define Tax Amount Distribution window, which shows the base amount and the tax amount.

In the example, the three tax types BED, SED, and CST appear in the table with their tax amount and base amount respectively.