Tax Agency: Configuration Prerequisites

Before starting the creation of a tax agency, you must be sure that the system has been configured properly and that all required entities have been created, as described in the following sections.

Configuring the System

Before you configure a tax agency, you need to make sure that the following configuration tasks have been performed in the system:

• On the Chart of Accounts (GL202500) form, all GL accounts that you will use for tax reporting purposes have been added. The following table lists the accounts that should be configured in the U100 dataset.

  Account	Account Class	Type	Description	Control Account Module
  24100	OTHCURLIAB	Liability	Tax Payable	TX
  17000	OTHERCURAS	Asset	Tax Claimable	TX
  65100	EXTAX	Expense	Other Tax Expenses

  The liability account will be used for accumulating the tax amounts to be paid to the tax agency in a tax period. The expense account will be used to record tax adjustments and expenses for the tax agency.

• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• To ease data entry when a new tax agency is created, you can create a vendor class that is designed for tax agency accounts. When you create a new tax agency, you select this class, and the system fills in the settings you have established for it, such as the country, the terms of payment, and the GL accounts. You can overwrite the default values for a particular tax agency, if needed. On the Vendor Classes (AP201000) form, you create the vendor class, which will provide default values for tax agency accounts. For details, see Accounts Payable: To Create a Vendor Class.