Ebusiness Tax Setup Steps

By Aslam Khan Head of IT / Project Manager ERP Lucky Textile Mills L8, Block 21. F.B. Ind. Area, Karachi Email : [email protected]

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Creating a Tax Regime 1. 2. 3. Navigate to the E-Business Tax Home Page (N) Setup > Tax > E-Business Tax Home > Tax Configuration (Expand) Navigate to the Create Tax Regime page. (N) Create Tax Regime: Go To Task Enter a new tax regime based on the following information: (B) Create
Field Tax Regime Code and Name Regime Level Country Name Effective From US Sales and Use Tax PKFBR Country Pakistan 13-Jan-1983 YYYY = Current year Blank

Effective To

4.

Enter tax regime controls:

Field Allow Tax Recovery Allow Override and Entry of Inclusive Tax Lines Allow Tax Exemptions Allow Tax Exceptions Yes Yes Yes Yes PKFBR

5.

Enter tax regime defaults:

Field Tax Currency Minimum Accountable Unit Rounding Rule Tax Precision PKR 1 Nearest / up 0 PKFBR

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Tax Regime

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Creating a Tax 8. 9. Navigate to the Create Taxes page. (N) Create Tax: Go To Task Create a new tax based on the following information: (B) Create
Fields Tax Regime Code Configuration Owner Tax and Tax Name Tax Type Effective From PKFBR Global Configuration Owner GST SALES_TAX 13-JAN-1983 YYYY = Current year Blank Country PAKISTAN Corporate FEDERAL BOARD OF REVENUE Recalculated Data

Effective To Geography Type and Parent Geography Type Parent Geography Name Exchange Rate Type Reporting Tax Authority and Collecting Tax Authority Applied Amount Handling

10. Enter Tax Rate Controls and Defaults (B) Create

Fields Allow Tax Inclusion Allow override entry of inclusive tax line Allow Tax Rounding Override Data Standard Non-Inclusive Handling Yes Yes

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10a. Enter Tax Rate (Tax Accounts Controls) (B) Create

Fields Tax Accounts Creation Method Data Create Tax Accounts

10b. Enter Tax Rate (Tax Exceptions / Exceptions Controls) (B) Create
Fields Allow Tax Exceptions Allow Tax Exemptions Tax Exemptions Creation Method Yes Yes Creation Tax Exemptions Data

10c. Enter Tax Rate (Tax Recovery Controls) (B) Create

Fields Allow Tax Recovery Yes Data

11. Enter Tax Accounts (B) Create

Fields Ledger Operating Unit Tax Recoverable /Liability Yes Yes 01.000.000.00.450630002.0000000.000 Data

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Create Tax

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Tax Accounts

Creating a Tax Status 12. Navigate to the Create Tax Status page. (N) Create Tax Status: Go To Task 13. Create a new tax status based on the following information: (B) Create
Field Tax Regime Code Configuration Owner Tax Tax Status Code and Name Effective From PKFBR Global Configuration Owner GST GST 01-JAN-YYYY YYYY = Current year Blank Yes 01-JAN-YYYY YYYY = Current year Blank Data

Effective To Set as Default Tax Status Default Status Effective From

Default Status Effective To

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14. Enter Tax Rate Controls and Defaults (B) Create

Fields Allow Tax Exemptions Allow Tax Exceptions Allow Tax Rate Override Default Recovery Settlement Yes Yes Yes Immediate Data

Tax Status

Creating a Tax Jurisdiction 18. Navigate to the Create Tax Jurisdiction page. (N) Create Tax Jurisdiction: Go To Task 19. Create a new tax jurisdiction based on the following information: (B) Create
Field Tax Jurisdiction Code and Name Tax Regime Code Tax Geography Type Effective From Effective To PKFBR GST Country 01-JAN-YYYY YYYY = Current year Blank Data

GST_FBR_JUR

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Geography Name Parent Geography Type Parent Geography Name Set as Default Tax Jurisdiction Default Effective From Default Effective To Precedence Level Collecting Tax Authority and Reporting Tax Authority

Pakistan Country Pakistan Yes 01-JAN-YYYY YYYY = Current year Blank FEDERAL BOARD OF REVENUE

Tax Jurisdiction

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Create Tax Rate for Jurisdiction for Taxable and None Taxable a. Taxable Tax Rate

20. (B) Apply. Creating a Tax Rate (Taxable) 21. Navigate to the Create Tax Rate page. (N) Create Tax Rate: Go To Task 22. Create a new tax rate based on the following information: (B) Create
Field Tax Regime Code Configuration Owner Tax Tax Status Code Tax Rate Code Rate Effective From PKFBR Global Configuration Owner GST GST STANDARD 15% 01-JAN-YYYY YYYY = Current year Blank Data

Effective To

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23. Enter tax rate details: (I) Rate Details

Fie ld Tax Rate Name and Description Set as Default Rate Default Effective From Default Effective To Default Recovery Rate Code Recovery Type Default Recovery Settle ment Allow Tex Inclusion Allow Tax Exemptions Allow Tax Exceptions No 01-JAN-YYYY YYYY = Current year Blank Standard Standard Immediate Standard Non-Inclusive Handling Yes Yes US Sales and Use Tax TAXABLE

24. Enter Tax Accounts (B) Create

Fields Ledger Operating Unit Tax Recoverable /Liability Yes Yes 01.000.000.00.450630002.0000000.000 Data

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Rate Detail of Tax Rate

Enter Tax Accounts for Tax Rate Enter Ledger and Press Create Button

Creating a Tax Rate (None-Taxable) 25. Navigate to the Create Tax Rate page. (N) Create Tax Rate: Go To Task

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26. Create a new tax rate based on the following information: (B) Create
Field Tax Regime Code Configuration Owner Tax Tax Status Code Tax Rate Code Rate Effective From PKFBR Global Configuration Owner GST GST STANDARD 15% 01-JAN-YYYY YYYY = Current year Blank Data

Effective To

27. Enter tax rate details: (I) Rate Details

Field Tax Rate Name and Description Set as Default Rate Default Effective From Default Effective To Default Recovery Rate Code Recovery Type Default Recovery Settlement Allow Tex Inclusion Allow Tax Exemptions Allow Tax Exceptions No 01-JAN-YYYY YYYY = Current year Blank Standard0 Standard0 Immediate Standard Non-Inclusive Handling Yes Yes US Sales and Use Tax NONE TAXABLE

28. Enter Tax Accounts (B) Create

Fields Ledger Operating Unit Tax Recoverable /Liability Yes Yes 01.000.000.00.450630002.0000000.000 Data

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Zero Rated Tax for None Taxable

Enter Tax Rate as follows

And Enter the Tax Accounts as previous

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29. Create a new tax rate based on the following information: (100% Rate for Taxable) (B) Create
Field Tax Regime Code Configuration Owner Tax Rate Type Tax Recovery Rate Code Recovery Type PKFBR Global Configuration Owner GST Recovery STANDARD 15% Data

30. Create a new tax rate based on the following information: (B) Create
Field Percentage Recovery Rate Effective From Set as Default 100 01-JAN-YYYY YYYY = Current year No Data

31. Tax Account (Refer to ..Previous Tax Accounts) Tax Recovery Rate Standard

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32. Create a new tax rate based on the following information: (0% Rate for Non-Taxable) (B) Create
Field Tax Regime Code Configuration Owner Tax Rate Type Tax Recovery Rate Code Recovery Type PKFBR Global Configuration Owner GST Recovery STANDARD0 15% Data

33. Create a new tax rate based on the following information: (B) Create
Field Percentage Recovery Rate Effective From Set as Default 0 01-JAN-YYYY YYYY = Current year Yes Data

34. Tax Account (Refer to ..Previous Tax Accounts) Tax Recovery Rate for Standard0

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Define Tax Rules 35. Navigate to the Tax Rules window (N) Create Tax Rules: Go To Task
Field Configuration Owner Tax Regime Code Tax Data Global Configuration Owner PKFBR GST

Press Go Button 36. Set the Tax Rules as Follows: Determine Place of Supply (I) Set Default Rule Type Default: Bill From (B) Apply Determine Tax Applicability: (I) Set Default Rule Type Default: Not Applicable (B) Apply Determine Tax Registration (I) Set Default Rule Type Default: Bill From Party (B) Apply Note: The Determine Tax Status and Determine Tax Rate do not allow update, both default to XXAP US Sales Determine Taxable Basis: (I) Set Default Rule Type Default: STANDARD_TB (B) Apply Calculate Tax Amounts: (I) Set Default Rule Type Default: STANDARD_TC (B) Apply

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Tax Rules

Enable Tax for Transactions 37. Navigate to the Tax window (N) Create Tax : Go To Task 38. Find the Tax you created earlier. Country = Pakistan Tax Regime = PKFBR Tax = GST 39. (B) Find. 40. Select the tax and click (I) Update. 41. Ensure the tax is available for transactions. Make Tax Available for Transactions = Checked

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Advanced Setup Option

To enable tax with Tax Classification Code, Following Setup Step needs to be completed. 42. Tax Determining Factors STCC is set by default defined and required no changes. It uses Transaction Input Factor. 43. Tax Determining Factor Sets STCC is also defined and required no changes. 44. Tax Condition Sets require to be created for Taxable and None Taxable. 45. Navigate to the Tax Condition Sets window (For Taxable)
Field Tax Condition Set And Condition Set Name Determining Factor Set Name And Determining Factor Set Country Data STCC_STD

STCC

Blank Field Data Transaction Input Factor Tax Classification Code Taxable

46. Tax Condition

Determining Factor Class Determining Factor Name Value/From Range

Create Tax Condition Sets as STCC_STD

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47. Navigate to the Tax Condition Sets window

Field Tax Condition Set And Condition Set Name Determining Factor Set Name And Determining Factor Set Country Data STCC_STD0

STCC

Blank Field Data Transaction Input Factor Tax Classification Code Non Taxable

48. Tax Condition

Determining Factor Class Determining Factor Name Value/From Range

Create Tax Condition Sets as STCC_STD0

When creating Tax Condition Sets Please do not select Country

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49. Updating the Tax Rules 50. Navigate to the Tax Rules window (N) Create Tax Rules: Go To Task
Field Configuration Owner Tax Regime Code Tax Data Global Configuration Owner PKFBR GST

Press Go Button

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51. Select Direct Tax Rate Determination and Press Expert Rule Entry Button

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52. Navigate to the Tax Rules window 53. Step 1 of 3

Field Rule Code and Name Effective From Determining Factor Set Data GSTSTCC RULE 01-JAN-YYYY YYYY = Current year STCC

After Updating information Press Next

54. Step 1 of 3
Field Condition Set Code and Name Order Status Result Rate Result Enabled 1 GST Taxable Yes Data STCC_STD

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55. Press Button Add Another Row 56. Step 1 of 3

Field Condition Set Code and Name Order Status Result Rate Result Enabled 2 GST Non Taxable Yes Data STCC_STD0

After Updating information Press Next

57. Selectthe Rule Order 1 and Check the Enable 58. Press Finish

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Same setup required for Excise Tax

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Now Tax Setup is complted and Use Tax Classification in AP / AR. Select Taxable for 15% and 1%. Leave Blank for Non Taxbale or Select Non Taxble in Tax Classification

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