Tax Determination

• Tax determination code (field COD)

 Table code on 20 characters, numeric or alphanumeric according to the table type. In this latter case, the format is not controlled on the entry. Also, all non numeric characters are not taken into account. In addition, only the decimal point ('.') serves as a separator : the comma is not taken into account.

• Legislation (field LEG)

In creation mode, the legislation code can be initialized via the user parameter LEGFIL - Legislation (selection filter) (SUP chapter, INT group). This parameter is also used to filter the list left in order to present only the codes defined for this legislation and those defined at the "All legislations" level.
The legislation entered in this field is used to select tax elements corresponding to this legislation.
See below the principles related to the multi-legislation setup.

General principles for legislation:

• When a record exists for a legislation, for example French legislation (FRA), it can only be used in other files (setups, movement entry, etc.) containing the same legislation (FRA) or no legislation at all. It cannot be used in a record containing a different legislation.
• When a record exists without legislation, or all the legislations, it can be used in other records regardless of their legislation.

This behavior is modifiedwhen a record has several legislations:

If a record (same code) exists for a legislation, for example FRA, and also without legislation, the behavior is as follows:

• For a record with a legislation different from the legislation defined in the data (FRA in the example):
  Only the data set up without legislation can be used.
   
• For a record containing an identical legislation (FRA in the example):
  Only the date set up with this legislation can be used, as long as it is active.
  The data set up without legislation cannot be used even if it is active, and the data set up with legislation is inactive.
   
• For a record for which there is no legislation entered:
  Only the data set up without legislation can be used.
  The data with a legislation is not available for selection and cannot be used.
  However, if the data without legislation does not exist, all data containing a legislation is available for selection and can be used.
  
  When using data available for several legislations that is set up with a group of companies, an additional control is carried out to maintain consistency within the  group of companies. It is a control between the legislation of the element (setup, flows, etc.) in which the data is used and the legislation of  group of companies entered on the  data and the reverse.
   
  Example: The Tax rate  setup element uses the Tax rule data.

If the Tax rate is linked to a legislation, the control ensures that the group of the Tax rule contains at least one company with the same legislation as the legislation of the Tax rate.

If the Tax rate is defined for a group has no legislation, the control ensures that the legislation of the Tax rule corresponds to at least one of the companies of the group entered on the Tax rate.

The list of selection of data does not take into account this control because it is only carried out when the data is selected. 

• Active (field ENAFLG)

This box is used to specify whether the displayed tax determination rule must be active or not:

• if ticked, the rule can be applied to all sales and purchase documents,
• if it is not checked, the rule is considered to be inactive and it cannot be selected.

Special case when the rule is legislation-bound:

If a rule (same code) exists both with a legislation (e.g. FRA) and with no notion of legislation, and is used in a document, several cases are possible:

Case 1: the rule is active (with the FRA legislation but without a notion of legislation)

• If the legislation of the document company is identical (FRA in this example), only the rule defined with the FRA legislation may be used. It will not be possible to use the rule defined without legislation even if it is active.

Case 2: the rule is not active with the FRA legislation but it is active with no notion of legislation.

• If the legislation of the document company is identical (FRA in this example), it will not be possible to use the rule defined with the FRA legislation since it is inactive. It will not be possible either to use the rule defined without legislation even if it is active.

• Description (field DESAXX)

This is the translatable title of the tax determination rule.

By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
You can add your translation in another language using the Translation function:

• Click Translation from the Actions icon in the corresponding field.
• In the Translation window, add a new language code with the translation in this language.

A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.

The connection language must be defined as a default language for thefolder.

• Short description (field SHOAXX)

This is the translatable short title of the tax determination rule.

By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
You can add your translation in another language using the Translation function:

• Click Translation from the Actions icon in the corresponding field.
• In the Translation window, add a new language code with the translation in this language.

A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.

The connection language must be defined as a default language for thefolder.

• Company group (field GRP)

Use this field to access the different site/company groups available.
The group entered in this field allows you to filter the information displayed and to guarantee consistency of the function setup, but it is mainly used to have exceptions for several companies regarding a tax rule application.

By entering a company group, you can limit the scope to companies in the selected group only. When this data is used for another record or with a setup element also defined in the group, a control checks that the groups have at least one company in common when the groups are different.  

In addition, a consistency check is performed for the legislations of the companies in the selected group.
At least one of these companies must have the same legislation as the one entered in the Legislation field. If  not, a warning message displays.

• Tax type (field VATTYP)

A tax code can be used to identify several tax types:

• VAT (Value Added Tax): based on the excl.-tax amount
• Additional tax: based on the excl.-tax amount on the quantity or any other item of a document line
• Special tax: based on the excl.-tax amount on the quantity or any other item of a document line
• Local tax: See below.

For a Special tax or Additional tax, select the Subject to VAT check box if the tax type is subject to a VAT.

Local tax

Application

This type of tax is not managed in France.
It is applies to Canada and Argentina.

Prerequisites

The PTX - Tax rates implementation activity code must be activated beforehand.
To manage Argentine local taxes, the KAG - Argentinean activity code must be active.

Principle

Taxes on the document footer are applied according to the region of origin and/or destination.
This feature can be extended to other cases: The local taxes depend on information from the TAXLINK table. They can be used as additional taxes in the document footer. This particular case is useful for preventing the tax from being transferred directly into the table.

Location

• In the Sales module, the local tax is displayed directly on the invoice footer.
• In the Purchasing module, the four additional tax codes are displayed on the line and can be modified.
  If the number of taxes is limited for sales, you cannot specify more than four taxes in purchasing lines.

• BP tax rule (field VACBPR)

A tax rule represents the tax territoriality principle, in other words, the calculation rules to be applied to determine the tax amount.
As a general rule, by crossing a tax rule linked to the BP with a Tax level, you can determine the tax code to be applied to the document line and so, to the entry line.
In this field, you enter the tax rule associated with the BP: this tax rule will be suggested by default in all the transactions used by this business partner.

• Product tax level (field VACITM)

Use this field to specify the tax level.
Each country being ruled by its own tax rates, the tax level alone does not enable the rate to be applied to be determined. The tax is generally determined by crossing the tax rule associated with a BP and the tax level associated with a product.
 See the documentation on Tax determination for further information.
The tax level only displays the list of the different rates applied within a same rule.

• field FLD1

• field DES1

• field OPE1

Indicate the comparison operation:

• The "indifferent" operator is used to obtain all records of an object.
• The '* ?' operator is used to define wildcards.

• field VAL1

This field is used to indicate the comparison value (without quotation marks for the alphabetic fields).

• field ANDOR2

Indicate the link between the criteria lines.

For instance:
If you enter Expr1 and Expr2 or Expr3, then you get (Expr1 & (Expr2 | (Expr3)))

• Formula (field EXP1)

• Total formula (field EXPTOT)

• Tax (field VAT)

This field is used to specify a tax code.
This code can be accessed by right click or by tunnel and is linked to the tax type specified in the screen (additional tax, provincial tax, etc.): For instance, when you select the provincial tax, the tax rates associated to this type of tax will be those specific to the provincial tax.
 The rule set up in the tax code must be identical to the one specified in this screen.