Enter Tax Code

Explanation

This activity is used to enter or update tax code information. A tax code cannot be deleted if it has been used in the system. This task is required and must be performed by a system administrator or a person of an equivalent authority. .

Prerequisites

This activity requires that a company exists in IFS Financials.

System Effects

As a result of this activity, the tax code information can be used in IFS/Invoicing, IFS/Payment, and IFS Accounting Rules.

Window

Tax Codes

Related Window Descriptions

Tax Codes

Procedure

  1. Open the Tax Codes window.
  2. Create a new record.
  3. Enter an alphanumeric tax code ID.
  4. Enter or edit the description.
  5. Enter or edit the percentage for the fee code, e.g., 5.
  6. In the Valid From and Valid Until fields, enter the date range for the code. Note that, for an existing code, you can also edit the Valid Until field.
  7. In the Tax Type list, click the fee type for the code.
  8. In the Tax Method Tax Received list, click the tax received method.
  9. In the Tax Method Tax Disbursed list, click the tax disbursed method.
  10. In the Deductible field, enter how much of the tax percentage is deductible. By default, the Deductible % is 100. 
  11. From the Tax Amount at Invoice Printout list, select the method to use for printing tax amount information on the invoice. The tax amount will be either included in the unit sales price of the product or printed as a separate line on the invoice, depending on the method you use.
  12. Enter the tax amount limit to be applied for the tax code (if applicable), in the Tax Amount Limit in Accounting Currency field. The amount entered in this field will be checked against the customer invoice lines using this tax code and if the tax amount for the invoice line is within the specified limit, tax will not be posted for the invoice line.
  13. Select a value from the list in the Tax Reporting Category field to indicate whether the tax code is being used for the supply of goods, services or tripartite trade, within the EU.
  14. Save the changes.