Additional Process Information in fi

Special Notes

U.S. taxes have only been configured for the US company code in the IDES System.

• Tax jurisdiction codes have been set up for every state in the United States.
• The tax jurisdiction codes have been broken down by state, county, and city.

Most states have tax jurisdiction codes set up at the state level only; however, some states have tax jurisdiction codes set up for several cities. For example, California and Pennsylvania have several tax jurisdiction codes.

Every cost center, plant, and customer record is assigned a tax jurisdiction code. This tax jurisdiction code automatically appears as a default value during transaction processing.

The following tax codes are used for Sales and Distribution and Accounts Receivable:

S0 Non-taxable

S1 Taxable

The following tax codes are used for Materials Management and Accounts Payable:

I0 Non-taxable

I1 Taxable

U0 Interstate tax, non-taxable

U1 Interstate tax, taxable

A tax code has been set for every customer and every material in the IDES System. This means that taxes are calculated automatically. If something appears with a taxable code, and you do not want the system to calculate taxes, you can always manually overwrite the code with a one that is non-taxable.

If you want taxes to be processed from your own data, see the following instructions:

• When you create a customer, make sure that you assign a tax jurisdiction code that is appropriate for the state where the customer is located.
• If you create a customer and plan to post SD transactions, make sure that you enter 1 as the tax code to indicate that the customer is subject to tax.
• When you create a material, make sure that you enter 1 as the tax code to indicate that the material is taxable.
• When you create a cost center, internal order, or project, make sure that you assign it a tax jurisdiction code.
• If you create your own plant, make sure that you link a tax jurisdiction code to it.