© aslam.pk. All rights reserved. 2009. 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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© aslam.pk. All rights reserved. 2009.
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]
© aslam.pk. All rights reserved. 2009.
Creating a Tax Regime
1. Navigate to the E-Business Tax Home Page − (N) Setup > Tax > E-Business Tax Home > Tax Configuration (Expand)
2. Navigate to the Create Tax Regime page. − (N) Create Tax Regime: Go To Task
3. Enter a new tax regime based on the following information: − (B) Create
Field US Sales and Use Tax
Tax Regime Code and Name PKFBR
Regime Level Country
Country Name Pakistan
Effective From 13-Jan-1983 • YYYY = Current
year
Effective To Blank
4. Enter tax regime controls: Field PKFBR
Allow Tax Recovery Yes
Allow Override and Entry of Inclusive Tax Lines
Yes
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes
5. Enter tax regime defaults: Field PKFBR
Tax Currency PKR
Minimum Accountable Unit 1
Rounding Rule Nearest / up
Tax Precision 0
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Tax Regime
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Creating a Tax
8. Navigate to the Create Taxes page. − (N) Create Tax: Go To Task
9. Create a new tax based on the following information: − (B) Create
Fields Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration Owner
Tax and Tax Name GST
Tax Type SALES_TAX
Effective From 13-JAN-1983 • YYYY = Current
year
Effective To Blank
Geography Type and Parent Geography Type
Country
Parent Geography Name PAKISTAN
Exchange Rate Type Corporate
Reporting Tax Authority and Collecting Tax Authority
FEDERAL BOARD OF REVENUE
Applied Amount Handling Recalculated
10. Enter Tax Rate Controls and Defaults − (B) Create
Fields Data
Allow Tax Inclusion Standard Non-Inclusive Handling
Allow override entry of inclusive tax line
Yes
Allow Tax Rounding Override Yes
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10a. Enter Tax Rate (Tax Accounts Controls) − (B) Create
Fields Data
Tax Accounts Creation Method Create Tax Accounts
10b. Enter Tax Rate (Tax Exceptions / Exceptions Controls) − (B) Create
Fields Data
Allow Tax Exceptions Yes
Allow Tax Exemptions Yes
Tax Exemptions Creation Method Creation Tax Exemptions
10c. Enter Tax Rate (Tax Recovery Controls) − (B) Create
Fields Data
Allow Tax Recovery Yes
11. Enter Tax Accounts − (B) Create
Fields Data
Ledger Yes
Operating Unit Yes
Tax Recoverable /Liability
01.000.000.00.450630002.0000000.000
© aslam.pk. All rights reserved. 2009.
Create Tax
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© aslam.pk. All rights reserved. 2009.
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 Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration Owner
Tax GST
Tax Status Code and Name GST
Effective From 01-JAN-YYYY • YYYY = Current
year
Effective To Blank
Set as Default Tax Status Yes
Default Status Effective From 01-JAN-YYYY • YYYY = Current
year
Default Status Effective To Blank
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14. Enter Tax Rate Controls and Defaults − (B) Create
Fields Data
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes
Allow Tax Rate Override Yes
Default Recovery Settlement Immediate
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 Data
Tax Jurisdiction Code and Name GST_FBR_JUR
Tax Regime Code PKFBR
Tax GST
Geography Type Country
Effective From 01-JAN-YYYY • YYYY = Current year
Effective To Blank
© aslam.pk. All rights reserved. 2009.
Geography Name Pakistan
Parent Geography Type Country
Parent Geography Name Pakistan
Set as Default Tax Jurisdiction Yes
Default Effective From 01-JAN-YYYY • YYYY = Current year
Default Effective To Blank
Precedence Level
Collecting Tax Authority and Reporting Tax Authority
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 Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration Owner
Tax GST
Tax Status Code GST
Tax Rate Code STANDARD
Rate 15%
Effective From 01-JAN-YYYY • YYYY = Current
year
Effective To Blank
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23. Enter tax rate details: − (I) Rate Details
Fie ld US Sales and Use Tax
Tax Rate Name and Description TAXABLE
Set as Default Rate No
Default Effective From 01-JAN-YYYY • YYYY = Current year
Default Effective To Blank
Default Recovery Rate Code Standard
Recovery Type Standard
Default Recovery Settlement Immediate
Allow Tex Inclusion Standard Non-Inclusive Handling
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes
24. Enter Tax Accounts − (B) Create
Fields Data
Ledger Yes
Operating Unit Yes
Tax Recoverable /Liability
01.000.000.00.450630002.0000000.000
© aslam.pk. All rights reserved. 2009.
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 Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration Owner
Tax GST
Tax Status Code GST
Tax Rate Code STANDARD
Rate 15%
Effective From 01-JAN-YYYY • YYYY = Current
year
Effective To Blank
27. Enter tax rate details: − (I) Rate Details
Field US Sales and Use Tax
Tax Rate Name and Description NONE TAXABLE
Set as Default Rate No
Default Effective From 01-JAN-YYYY • YYYY = Current year
Default Effective To Blank
Default Recovery Rate Code Standard0
Recovery Type Standard0
Default Recovery Settlement Immediate
Allow Tex Inclusion Standard Non-Inclusive Handling
Allow Tax Exemptions Yes
Allow Tax Exceptions Yes
28. Enter Tax Accounts − (B) Create
Fields Data
Ledger Yes
Operating Unit Yes
Tax Recoverable /Liability
01.000.000.00.450630002.0000000.000
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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 Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration Owner
Tax GST
Rate Type Recovery
Tax Recovery Rate Code STANDARD
Recovery Type 15%
30. Create a new tax rate based on the following information: − (B) Create
Field Data
Percentage Recovery Rate 100
Effective From 01-JAN-YYYY YYYY = Current year
Set as Default No
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 Data
Tax Regime Code PKFBR
Configuration Owner Global Configuration Owner
Tax GST
Rate Type Recovery
Tax Recovery Rate Code STANDARD0
Recovery Type 15%
33. Create a new tax rate based on the following information: − (B) Create
Field Data
Percentage Recovery Rate 0
Effective From 01-JAN-YYYY YYYY = Current year
Set as Default Yes
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 Data
Configuration Owner Global Configuration Owner
Tax Regime Code PKFBR
Tax 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 Data
Tax Condition Set And Condition Set Name
STCC_STD
Determining Factor Set Name And Determining Factor Set
STCC
Country Blank
46. Tax Condition Field Data
Determining Factor Class Transaction Input Factor
Determining Factor Name Tax Classification Code
Value/From Range Taxable
Create Tax Condition Sets as STCC_STD
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47. Navigate to the Tax Condition Sets window Field Data
Tax Condition Set And Condition Set Name
STCC_STD0
Determining Factor Set Name And Determining Factor Set
STCC
Country Blank
48. Tax Condition Field Data
Determining Factor Class Transaction Input Factor
Determining Factor Name Tax Classification Code
Value/From Range Non Taxable
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 Data
Configuration Owner Global Configuration Owner
Tax Regime Code PKFBR
Tax 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 Data
Rule Code and Name GSTSTCC RULE
Effective From 01-JAN-YYYY YYYY = Current year
Determining Factor Set STCC
After Updating information Press Next
54. Step 1 of 3
Field Data
Condition Set Code and Name STCC_STD
Order 1
Status Result GST
Rate Result Taxable
Enabled Yes
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55. Press Button Add Another Row 56. Step 1 of 3
Field Data
Condition Set Code and Name STCC_STD0
Order 2
Status Result GST
Rate Result Non Taxable
Enabled Yes
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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