Use Taxes: Configuration Prerequisites

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

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

  Account	Account Class	Type	Description	Control Account Module
  65200	EXTAX	Expense	Use Tax

• 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.
• On the Tax Categories (TX205500) form, the TAXABLE category has been created.