Tax Report Configuration: Configuration Prerequisites

Before starting the creation of a tax report, 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 report, you need to make sure that the following configuration tasks have been performed in the system:

• If you are configuring a tax report for VAT, on the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• On the Chart of Accounts (GL202500) form, the GL accounts that should be used for recording tax-related amounts have been created.
• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax Agency: To Set Up a Tax Agency for Sales Taxes and Tax Agency: To Set Up a Tax Agency for VAT.
• On the Tax Agency tab of the Vendors form, the Automatically Generate Tax Bill check box is selected. This setting means that on release of a tax report, the system will automatically generate the tax bill to the agency and will use the tax amount accumulated in the Tax Total line as the document amount.