Ebusiness Tax Setup Steps: Aslam Khan

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 : khan@aslam.pk
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
4.
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
Enter tax regime controls:

Field
5.
PKFBR
Allow Tax Recovery
Yes
Allow Override and Entry of

Inclusive Tax Lines
Yes
Allow Tax Exemptions
Yes
Allow Tax Exceptions
Yes
Enter tax regime defaults:

Field
PKFBR
Tax Currency
PKR
Minimum Accountable Unit
Rounding Rule
Nearest / up
Tax Precision
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
Yes
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
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 Regime Code
PKFBR
Configuration Owner
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
14. Enter Tax Rate Controls and Defaults

(B) Create
Fields
Data
Yes
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
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
Tax Jurisdiction
FEDERAL BOARD OF REVENUE
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
Owner
Tax
GST
Tax Status Code
GST
Tax Rate Code
STANDARD
Rate
15%
Effective From
01-JAN-YYYY
YYYY = Current
year
Effective To
Blank
23. Enter tax rate details:

(I) Rate Details
Fie ld
Tax Rate Name and Description
TAXABLE
Set as Default Rate
No
01-JAN-YYYY
YYYY = Current year
Blank
Default Recovery Rate Code
Standard
Recovery Type
Standard
Default Recovery Settle ment
Immediate
Allow Tex Inclusion
Standard Non-Inclusive Handling
Yes
Yes

(B) Create
Fields
Data
Ledger
Yes
Operating Unit
Yes
Tax Recoverable
/Liability
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

(B) Create
Field
Data
Tax Regime Code
PKFBR
Configuration Owner
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
Tax Rate Name and Description
NONE TAXABLE
Set as Default Rate
No
01-JAN-YYYY
YYYY = Current year
Blank
Default Recovery Rate Code
Standard0
Recovery Type
Standard0
Default Recovery Settlement
Immediate
Allow Tex Inclusion
Standard Non-Inclusive Handling
Yes
Yes

(B) Create
Fields
Data
Ledger
Yes
Operating Unit
Yes
Tax Recoverable
/Liability
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 Regime Code
PKFBR
Configuration Owner
Owner
Tax
GST
Rate Type
Recovery
Tax Recovery Rate Code
STANDARD
Recovery Type
15%

(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
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
Owner
Tax
GST
Rate Type
Recovery
Tax Recovery Rate Code
STANDARD0
Recovery Type
15%

(B) Create
Field
Data
Percentage Recovery Rate
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
Define Tax Rules

35. Navigate to the Tax Rules window
(N) Create Tax Rules: Go To Task
Field
Data
Configuration Owner
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
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
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

(N) Create Tax Rules: Go To Task
Field
Data
Configuration Owner
Owner
Tax Regime Code
PKFBR
Tax
GST
Press Go Button
51. Select Direct Tax Rate Determination and Press Expert Rule Entry Button

53. Step 1 of 3
Field
Data
Rule Code and Name
GSTSTCC RULE
Effective From
01-JAN-YYYY
YYYY = Current year
STCC
After Updating information Press Next
54. Step 1 of 3
Field
Data
Condition Set Code and Name
STCC_STD
Order
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
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

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Ebusiness Tax

aslam.pk. All rights reserved. 2009.

Creating a Tax Regime

Navigate to the E-Business Tax Home Page

Navigate to the Create Tax Regime page.

Enter a new tax regime based on the following information:

US Sales and Use Tax

Tax Regime Code and Name

Enter tax regime controls:

Allow Tax Recovery

Allow Override and Entry of

Allow Tax Exemptions

Allow Tax Exceptions

Enter tax regime defaults:

Minimum Accountable Unit

aslam.pk. All rights reserved. 2009.

aslam.pk. All rights reserved. 2009.

Navigate to the Create Taxes page.

Create a new tax based on the following information:

Tax Regime Code

Tax and Tax Name

Geography Type and Parent

Parent Geography Name

Exchange Rate Type

Reporting Tax Authority and

Applied Amount Handling

10. Enter Tax Rate Controls and Defaults

Allow Tax Inclusion

Allow override entry of inclusive tax

Allow Tax Rounding Override

aslam.pk. All rights reserved. 2009.

10a. Enter Tax Rate (Tax Accounts Controls)

Tax Accounts Creation Method

Create Tax Accounts

10b. Enter Tax Rate (Tax Exceptions / Exceptions Controls)

Allow Tax Exceptions

Allow Tax Exemptions

Tax Exemptions Creation Method

Creation Tax Exemptions

10c. Enter Tax Rate (Tax Recovery Controls)

Allow Tax Recovery

11. Enter Tax Accounts

aslam.pk. All rights reserved. 2009.

aslam.pk. All rights reserved. 2009.

aslam.pk. All rights reserved. 2009.

Creating a Tax Status

Tax Regime Code

Tax Status Code and Name

Set as Default Tax Status

Default Status Effective From

Default Status Effective To

aslam.pk. All rights reserved. 2009.

14. Enter Tax Rate Controls and Defaults

Allow Tax Exemptions

Allow Tax Exceptions

Allow Tax Rate Override

Default Recovery Settlement

Creating a Tax Jurisdiction