R12 Tax setups

Step 1: Create the Tax RegimeThe tax regime is the highest/ultimate level that taxes are rolled up to, typically, a specific country. In this step, the Controls and Defaults must be set. The Control section outlines 4 options. Once the tax is made live, the control options cannot be changed.The Defaults section will default as applicable to the tax, status, jurisidiction, and tax rate levels, but they can be changed at each level.Step 2: Create the TaxOne Tax Regime can have multiple taxes defined under it. The tax type, e.g. sales, VAT, use, is determined when the tax is set up. Taxes can be set up by geography type, which allows for taxes at different levels.. For example, in the US, there is can be a tax levied at the State level, one at the County level, and one at the City level.Step 3: Create the Tax StatusThis is used primarily in the UK to define reduced rate, zero rate, etc. taxes. All taxes must have at least one tax status defined, and one of those must have the "Set as Default Status" option checked.Step 4: Create the Tax JurisdictionA tax jurisdiction is a geographic area for which a tax is levied, e.g.Colorado, California, Florida, El Paso County, Los Angeles.There must be at least one Tax Jurisdiction for each Tax Status with the "Set as default Tax Jurisdiction" selected and the "Default Effective Date" supplied.Step 5: Create the Tax RateCreate specific tax rates to be applied for a geography. There must be at least one default tax rate. The tax accounts are also set up in this step.Step 6: Define Tax RulesSet defaults for the following rule types:Place of Supply, Registration, Taxable Basis, Calculate Tax AmountsStep 7: Make the Tax Live for TransactionsReturn back to the Tax created in step 2, and select the Make Tax Available for Transactions option. If it is not available to be checked, the tax is not set up correctly. Any missed setups will need to be completed before this can be setup.