Tax Setup
⇐ Table of Contents#System Administrator's Guide{{#if: Implementation| | Implementation }}{{#if: | | [[{{{3}}}]] }}{{#if: | | [[{{{4}}}]] }}{{#if: | | [[{{{5}}}]] }} | Tax Setup{{#if: Importing Key Data| | Importing Key Data }} ⇒
Before entering documents that have tax consequences, the taxes must be created.
Taxes can be complex, with different accounting requirements, calculations and reporting requirements. The tax can vary by product and by the geographical location of the seller, or buyer. In the ADempiere tax model, the tax to use on a document is selected based on a tax category. The tax category is assigned to products and charges and contains a number of summary or parent tax definitions. In a particular document, the geographical rules determine which of the summary taxes is applied. The subordinate taxes determine the details and actual accounting consequences.
Note: There is a Tax Setup workflow defined in ADempiere but it has been overtaken by the development of the Global Tax Management module. A few additional steps are required to get the tax working with this module.
To setup the tax, use the following windows:
- {{#if: Tax Category|Tax Category|TaxCategory }} Window
- {{#if: Tax Rate|Tax Rate|TaxRate }} Window
- {{#if: Tax Group|Tax Group|TaxGroup }} Window - allows you to group the business partner with a reference tax.
- {{#if: Tax Type|Tax Type|TaxType }} Window - another method to group taxes together.
- {{#if: Tax Base|Tax Base|TaxBase }} Window - defines the tax base as the product price, quantity, cost or weight.
- {{#if: Tax Rate Parent|Tax Rate Parent|TaxRateParent }} Window - The Tax Rate Parent Window defines the different subordinate taxes used for each tax category. For example Sales Tax must be defined for each State in which it applies.
- {{#if: TaxDefinition|TaxDefinition|TaxDefinition }} Window - You can use the tax dfinition information to create the logic necessary to get the tax rate to your document.
