Managing purchase tax rules

Select the “Manage Purchase Tax Rules” activity under the “Tax Charges & Discounts” business component.

The “Manage Purchase Tax Rules” page appears.

Enter the following in the “Search Criteria” group box:

Search On

Use the drop-down list box and select one of the following values to retrieve the tax rule definitions in the multiline:

“Part/Service Group” – If you select this option, the system lists all the ‘Active’ Part/Service Groups defined for the Purpose 'Taxes and Charges', ‘HSN Code’ and ‘SAC Code’ in the “Create Part/Service Group” activity of the “Part Administration” business component, in the adjacent drop-down list box.
“Service Category” – If you select this option, the system lists all the ‘Active’ Service Categories defined in the “Create Quick Codes” activity of the “Part Administration” business component, in the adjacent drop-down list box.
“Supplier Group” – If you select this option, the system lists all the ‘Active’ Supplier Group Codes defined in the “Manage Supplier Group” activity of the “Supplier” business component, in the adjacent drop-down list box.
“Warehouse Group” – If you select this option, the system lists all the ‘Active’ warehouse groups defined in the “Create Quick Codes” activity of the “Storage Administration” business component, in the adjacent drop-down list box.
“Document Type” – If you select this option, the system list the value “Purchase Order (PO)", "Repair Order (RO)", "Supplier Expense Invoice", "Supplier Item Invoice (ITEM INV)", "Supplier Item based Note”, "Item Invoice", "Account Based Note", "Item Based Note", "Stock Transfer Receipt" and "Loan Order" in the adjacent drop-down list box along with a blank value.
“Applied on?” – If you select this option, the system lists the values “Document” and “Part / Line” in the adjacent drop-down list box.
“Purpose” – If you select this option, the system lists all the ‘Active’ Purposes defined for Ref. Doc. Type "Purchase Order" in the “Manage Logistics Quick Codes” activity of the “Logistic Common Master” business component, in the adjacent drop-down list box.
“Tax Code” - Select this option and enter the tax code in the adjacent editable control.
“Tax Region from” – If you select this option, the system lists all the Tax Regions defined for Entity "Tax Region" in the “Create Quick Codes” activity of the “Quick Codes” business component, in the adjacent drop-down list box.
“Tax Region to” - If you select this option, the system lists all the Tax Regions defined for Entity "Tax Region" in the “Create Quick Codes” activity of the “Quick Codes” business component, in the adjacent drop-down list box.
"Expense Category" - If you select this option, the system lists the values all the Quick Code defined for the entity 'Expense Category' in 'Quick Codes' Business Activity in 'Finance Setup' Business Component, that are in 'Active' status.
"Tax Type" - If you select this option, the system lists the values “EU VAT”, “Sales Tax”, “Indian GST”, “Indian VAT”, “PNG GST”, “Service Tax”, “TCS”, “TDS”, “Tax on Goods/Service" and “UK VAT” in the adjacent drop-down list box.

By default, the system leaves the field blank.

Click the “Go” pushbutton to retrieve the tax rule definitions in the multiline.

Note: On blank search, the system retrieves and displays all the ‘Active’ and ‘Inactive’ ‘Part Group/Service’, ‘Document Type’, ‘Service Category’, ‘Purpose’, ‘Supplier Group’ or ‘Warehouse Group’ values for which Tax Rule combination is already defined.

Enter the following in the “Tax Rules” multiline:

Part/Service Group

Use the drop-down list and select the part/service group. The system lists all the ‘Active’ Part/Service Groups defined for the Purpose 'Taxes and Charges', ‘HSN Code’ and ‘SAC Code' in the “Create Part/Service Group” activity of the “Part Administration” business component.

By default, the system leaves the field blank.

Document Type

Use the drop-down list and select the Document Type as “Purchase Order (PO)", "Repair Order (RO)", "Supplier Expense Invoice", "Supplier Item Invoice (ITEM INV)", "Supplier Item based Note”, "Item Invoice", "Account Based Note", "Item Based Note", "Loan Order" or "Stock Transfer Receipt". By default, the system leaves the field blank.

You must select the Document Type, if Document Sub Type or Purpose is selected.

Document Sub Type

Use the drop-down list the document sub type for the document type selected. The system lists the values All", “PO-Adhoc”, “PO-Dropship”, “PO-Express”, “PO-Exchange”, “PO-General”, “PO-PBH”, “PO-PBH-Exchange”, “PO-Service”, “RO-Normal”, “RO-Exchange”, “ITEM INV-Capital”, “ITEM INV-Non Capital”, "LO-Regular" and "LO-Exchange".

You must select the Document Sub Type, if Document Type is selected.

By default, the system leaves the field blank.

Service Category

Use the drop-down list box and select the service category. The system lists all the ‘Active’ Service Categories defined in the “Create Quick Codes” activity of the “Part Administration” business component.

By default, the system leaves the field blank.

Note: The Document Type and Document Sub Type selected must be a valid combination.

You cannot select both Service Category and Part/Service Group for a record in the multiline.

Purpose

Use the drop-down list and select the purpose of the purchase. The system lists all the ‘Active’ Purposes defined for Ref. Doc. Type "Purchase Order" in the “Manage Logistics Quick Codes” activity of the “Logistic Common Master” business component.

You must select ‘Purpose’, if Document Type is selected as other than “Purchase Order (PO)”.

By default, the system leaves the field blank.

Supplier Group

Use the drop-down list and select the supplier group. The system lists all the ‘Active’ Supplier Group Codes defined in the “Manage Supplier Group” activity of the “Supplier” business component.

By default, the system leaves the field blank.

The system displays the following field:

Supplier Group Type

The Supplier Group type corresponding to the Supplier Group will be displayed on selection of the Supplier Group.

Enter the following fields:

Warehouse Group	Use the drop-down list box and select the warehouse group. The system lists all the ‘Active’ warehouse groups defined in the “Create Quick Codes” activity of the “Storage Administration” business component. By default, the system leaves the field blank.
Account Usage	The account usage applicable for the tax rule definition. You must enter a valid Account Usage. Help facility available.
Expense Category	Use the drop-down list box to select the Expense Type of a record. The system lists all the Quick Code defined for the entity ‘Expense Category’ in “Quick Codes” Business Activity in “Finance Setup” Business Component that are in ‘Active’ Status along with a blank value.
Tax Region from	Use the drop-down list box and select the taxation region from where the parts are moved. The system lists all the "Active" Tax Regions defined for Entity "Tax Region" in the “Create Quick Codes” activity of the “Quick Codes” business component.
Tax Region to	Use the drop-down list box and select the taxation region to which the parts are to be moved. The system lists all the "Active" Tax Regions defined for Entity "Tax Region" in the “Create Quick Codes” activity of the “Quick Codes” business component.
Applied on?	Use the drop-down list and select the value “Document” or “Part / Line” to define tax rule at document level or part level. Mandatory. You must select “Document”, if: § Document Type is selected as “Repair Order (RO)”. § Document Type is selected as “Supplier Item Invoice” and Document Sub Type is selected as “ITEM INV.-Capital”. You must select “Part / Line”, if Document Type is selected as “Supplier Item based Note” or “Supplier Expense Invoice”. By default, the system leaves the field blank.
Tax Code	The tax code applicable for the tax rule combination. Mandatory. You must enter a valid tax code of Type “Tax”. Help facility available.

Note: You must select at least one of ‘Part/Service Group’, ‘Document Type’, ‘Service Category’, ‘Purpose’, ‘Supplier Group’, ‘Warehouse Group’, 'Tax Region from' or Tax Region to' in a multiline row.The system displays the following:

The system displays the following fields:

Tax Type	The tax type corresponding to the Tax Code - Variant Code combination will be displayed on click of enter key in the Variant code field.
Tax Code Desc.	The textual description of the tax code.

Enter the following:

Variant Code

The variant code of the tax code. The variant code entered must be valid corresponding to the tax code.

Help facility available.

The system displays the following:

Variant Code Desc.

The textual description of the variant code.

Enter the following:

Effective From	The date from which the tax rule combination is effective. Mandatory.
Effective To	The date until which the tax rule combination is effective. The ‘Effective To’ date entered must be equal to or later than the current date.
Currency	Use the drop-down list and select the currency as “Order Currency” or “Base Currency”. By default, the system leaves the field blank.
Order of Preference	The order in which the tax rules are sequenced in the multiline. Each tax rule must have unique order of preference starting from ‘1’. Mandatory.
Remarks	Any remarks related to the tax rule definition.

The system displays the following:

Variant Code Status	The status of the variant code, which could be “Active”.
Created by	The login name of the user who created the record in the multiline.
Create Date	The date on which the record was created.
Last Modified by	The login name of the user who last modified the record.
Last Modified Date	The date on which the record was last modified.

Click the “Save” pushbutton to save the purchase tax rule definitions.

Note: Ensure that at least on record is available in the multiline.

Ensure that when the Supplier Group Type corresponding to the Supplier Group Code selected is 'Tax', the tax type as defaulted for the tax code from the specify tax attributes should not have Tax Nature as ‘With-Holding Tax’. Also if the group type is TDS, ensure that the tax type as defaulted for the tax code from the specify tax attributes should be of type TDS.

The system displays an error message if any concurrent user attempts to modify the record in the multiline.

The system ensures the following:

For newly created tax rules, the tax code must be effective for the date range in which tax rule is effective. (i.e. Ensure that there is an overlap between the Tax Code effectivity and Tax Rule effectivity). Example.

For newly created tax rules, the variant code entered must be effective for the date range in which tax rule is effective. (i.e. Ensure that there must be an overlap between the Variant Code effectivity and Tax Rule effectivity). Example.

For each combination of Part/Service Group, Document Type, Document Sub Type, Service Category, Purpose, Supplier Group, Warehouse Group, Tax Code and Tax Variant, Effective From and Effective To Dates must not overlap between any two records (i.e. more than one tax rule combination does not exist in the same effective date range). Example.

To proceed carry out the following:

Select the “View Tax Code” link at the bottom of the page to view the TCD codes.
Select the “View Tax Attribute” link at the bottom of the page to view the tax attributes.

Pre-Requisites:

'Part/Service Group’ must be defined in the “Create Part/Service Group” activity of the “Part Administration” business component.
'Service Category’ must be defined in the “Create Quick Codes” activity of the “Part Administration” business component.
'Supplier Group’ must be defined in the “Manage Supplier Group” activity of the “Supplier” business component.
‘Warehouse Group’ must be defined in the “Create Quick Codes” activity of the “Storage Administration” business component.
‘Purpose’ must be defined for Ref. Doc. Type "Purchase Order" in the “Manage Logistics Quick Codes” activity of the “Logistic Common Master” business component.