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Former Member
Oct 25, 2007 at 05:43 PM

Tax Calculation Question.


1. One of the company codes for my client (call it company code A) is set up in the US; accounting reporting requirements for this company code are US. However, the only plant for company code A is located in Ireland and their only customer is in Ireland. Therefore, I need to be able to calculate and report VAT tax for Ireland.

2. Company code A was created using the copy function and the main US company was used as the source since the company code A must adhere to US reporting requirements. The country associated with each of the company codes is US. The tax procedure associated with all of the company codes is TAXUSJ, since this is the procedure associated with the country.

3. I need to be able to add and process additional tax codes (.e.g. A0 output Vat 0%; A1 Output VAT 12.5%, I0 Input VAT 0%; and I1 Input VAT 12.5%) with Company Code A. (I realize that since I am already using I0 and I1 for A/P Sales taxes, that I may have to define a new tax codes to handle the Input VAT).

4. Since tax codes are associated with the procedure which is tied to the country which is then tied to the Company code, how do I accomplish this?

If I add the additional tax codes, tax jurisdiction is still required (since my procedure is TAXUSJ). Also, the acct key for the tax calculations are still the ones associated with TAXUSJ).

What happens if I change the country associated with company code? Will this change the tax procedure associated with this company code?

Any assistance in handle this tax calculation process will be greatly appreciated.

Greg Brown

FI/CO Consultant