Setting Up Tax Services

This article lists steps for setting up Tax Services.

Note: To set up Tax Services, you must be assigned to a user group that is authorized to maintain tax information. For more information, see Tax Services Security Authorizations.

To set up Tax Services:

1. Gather all your current tax records, such as:

   • A list of the sales tax accounts used in your general ledger, such as the tax liability, recoverable tax, and tax expense accounts.
   • A list of your sales areas with their associated tax authorities (such as federal, state, or provincial), and tax rates.
2. Add the general ledger accounts you need for your tax data. More...

   Tax data is posted to the following general ledger accounts:

   • Tax liability (to which amounts calculated and collected as sales taxes are posted).
   • Recoverable tax (if any of the tax amounts paid on purchases are recoverable from the authority). This is an asset or contra liability account.
   • Expense (if tax amounts are expensed separately from the goods or services on which the tax was charged).
3. Add a record for each tax authority to whom you remit taxes. For more information, see Adding Tax Authorities.
4. Define the tax classes for each authority. For more information, see Adding Tax Classes.
5. Enter the tax rates for each set of sales and purchases tax classes. For more information, see Entering Tax Rates.
6. Set up tax groups containing the authorities. For more information, see Adding Tax Groups.

   You are now ready to enter tax information in your subledgers.

Last published: 4/8/2016