ebtax.pdf

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]


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


Tax Regime


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


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



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


Create Tax


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 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


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

Fields Data



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 GST

Geography Type Country

Effective From 01-JAN-YYYY YYYY = Current year

Effective To Blank


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


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 GST

Tax Status Code GST

Tax Rate Code STANDARD

Rate 15%


year

Effective To Blank


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 Recovery Rate Code Standard

Recovery Type Standard


Allow Tex Inclusion Standard Non-Inclusive Handling




Fields Data

Ledger Yes

Operating Unit Yes


01.000.000.00.450630002.0000000.000


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



Field Data



Tax GST

Tax Status Code GST

Tax Rate Code STANDARD

Rate 15%


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 Recovery Rate Code Standard0

Recovery Type Standard0


Allow Tex Inclusion Standard Non-Inclusive Handling




Fields Data

Ledger Yes

Operating Unit Yes


01.000.000.00.450630002.0000000.000


Zero Rated Tax for None Taxable

Enter Tax Rate as follows

And Enter the Tax Accounts as previous


29. Create a new tax rate based on the following information: (100% Rate for Taxable) - (B) Create

Field Data



Tax GST

Rate Type Recovery

Tax Recovery Rate Code STANDARD

Recovery Type 15%


Field Data

Percentage Recovery Rate 100


Set as Default No

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


32. Create a new tax rate based on the following information: (0% Rate for Non-Taxable) - (B) Create

Field Data



Tax GST

Rate Type Recovery

Tax Recovery Rate Code STANDARD0

Recovery Type 15%


Field Data

Percentage Recovery Rate 0


Set as Default Yes

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


Define Tax Rules

35. Navigate to the Tax Rules window - (N) Create Tax Rules: Go To Task

Field Data



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


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


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


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


49. Updating the Tax Rules

50. Navigate to the Tax Rules window - (N) Create Tax Rules: Go To Task

Field Data



Tax GST

Press Go Button


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


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

Field Data

Rule Code and Name GSTSTCC RULE


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


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


Same setup required for Excise Tax


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

ebtax.pdf

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