Tax Determination

The following Tax Determination tables allow you to define how tax-related master data tables are used. Note that the application verifies these determination tables to retrieve the latest configuration before performing postings.

The Tax Determination tables can be configured to support tax calculated by SAP, or tax calculated by Nakisa. The following tables must be configured and/or synced:

The "Tax" setting must be enabled in Company Financial Setting or System Financial Setting.
Tax Code master data table
Tax Jurisdiction master data table (if applicable)
Expense Category master data table (to configure different tax calculation per expense category)
Tax Code Determination table per country, company, and partner
Tax Rate Determination table to calculate taxes and select the tax account when Nakisa Lease Accounting Suite or Nakisa Portfolio Management Suite are operating in standalone mode (i.e., are not connected to SAP).

Note: Tax Code, Tax Jurisdiction, and Company are all related and connected by the Country configuration.

For information about how to configure these tables, see Using Configuration Tables.

To access the tax determination tables:

Click Main Menu > System Configuration.
In the ERP System drop-down at the top of the Navigation Panel, select the required system. The application only displays data for the selected system.
Expand Determination, and select Tax Determination.
Click on the table name. The table opens on the right of the screen.

The following tables are available, and must be configured.

Table	Description
Tax Code Determination	Defines the tax code determination per country, company, and partner. This table is used when the "Tax" setting is enabled in Company Financial Setting or System Financial Setting. For each entry, you must define the following: Tax Jurisdiction (which displays values from the Tax Jurisdiction master data table) may be mandatory based on the master data configuration of the selected country. Default Tax Code (which displays values from the Tax Code master data table) must be defined. Optionally an Expense Category (which displays values from the Expense Category master data table), and the Tax Exemption Percentage. If required, the Default Exemption Tax Code and Default Exemption Percentage can be defined. In Mapping by Expense Category, add an entry for each Expense Category to define a different tax code determination: Lease Expense: Set this field to "true" to set the fields related to lease amount fields, or set it to "false" to set the fields related to non-lease amount. Expense Category: Select one of the values displayed from the Expense Category master data table. Define Non-Lease or Lease Tax Code, Exemption Tax Code, and Exemption Tax Percentage for the selected Expense Category. Note that the Default fields are used if no separate Mapping by Expense Category determination applies.
Tax Rate Determination	This table is required when the applications are operating in standalone mode, and the tax calculation is performed by Nakisa. This table is not used if the applications are connected to SAP. There must be one entry for every Country, Tax Code, and/or Tax Jurisdiction combination defined in the Tax Code Determination table. For each entry, you must define the following: Tax Jurisdiction (which displays values from the Tax Jurisdiction master data table) may be mandatory based on the master data configuration of the selected country. Tax Code (which displays values from the Tax Code master data table) must be defined. In Tax Rate Mapping, add an entry for each Tax Rate Determination entry: Define the Tax Rate and Tax Account ID (which displays the accounts from the General Ledger Account master data table). Enter the Effective From date for this rate. This rate is valid until the Effective From date of the next Tax Rate Mapping entry. The application compares the Posting Date to determine which tax rate to use.

Table

Description

Tax Code Determination

Defines the tax code determination per country, company, and partner. This table is used when the "Tax" setting is enabled in Company Financial Setting or System Financial Setting.

For each entry, you must define the following:

Tax Jurisdiction (which displays values from the Tax Jurisdiction master data table) may be mandatory based on the master data configuration of the selected country.
Default Tax Code (which displays values from the Tax Code master data table) must be defined.
Optionally an Expense Category (which displays values from the Expense Category master data table), and the Tax Exemption Percentage.
If required, the Default Exemption Tax Code and Default Exemption Percentage can be defined.

In Mapping by Expense Category, add an entry for each Expense Category to define a different tax code determination:

Lease Expense: Set this field to "true" to set the fields related to lease amount fields, or set it to "false" to set the fields related to non-lease amount.
Expense Category: Select one of the values displayed from the Expense Category master data table.
Define Non-Lease or Lease Tax Code, Exemption Tax Code, and Exemption Tax Percentage for the selected Expense Category.

Note that the Default fields are used if no separate Mapping by Expense Category determination applies.

Tax Rate Determination

This table is required when the applications are operating in standalone mode, and the tax calculation is performed by Nakisa. This table is not used if the applications are connected to SAP.

There must be one entry for every Country, Tax Code, and/or Tax Jurisdiction combination defined in the Tax Code Determination table.

For each entry, you must define the following:

Tax Jurisdiction (which displays values from the Tax Jurisdiction master data table) may be mandatory based on the master data configuration of the selected country.
Tax Code (which displays values from the Tax Code master data table) must be defined.

In Tax Rate Mapping, add an entry for each Tax Rate Determination entry:

Define the Tax Rate and Tax Account ID (which displays the accounts from the General Ledger Account master data table).
Enter the Effective From date for this rate. This rate is valid until the Effective From date of the next Tax Rate Mapping entry. The application compares the Posting Date to determine which tax rate to use.

See also: