Setting up use tax

Hi,
How do I go about setting up a use tax for supplies that we consume during operations, such as office supplies?
Thanks,
Shelby

Hello Shelby - there are several factors involved here and there might be a few ways to ...a few questions for you first...
1. How do you invoice for these office and other usage supplies, by an AP Item type invoice or AP Service type invoice?
2. Where are you located?
3. How many levels of taxation districts/jurisdictions do you have in SAP B1?
4. Do you report taxes directly from SAP B1 or is the information extracted and externally adjusted?
5. Does your taxation from SAP B1 feed directly into the taxation authorities' systems or do you manually complete the required documents and send them in?
6. Do you have a user-defined chart of accounts and/or use segementation?
Regards,
Zal
@gary - hey how are things going? yes, it is 5am on Saturday!
@robert - I am in heaven with two taxation questions in two days!
Edited - oh darn, I just noticed this is from January - sorry folks....
Edited by: Zal Parchem on Jul 24, 2010 5:13 AM

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The other option was to send the cost details to Vertex, so that they can store it in Vertex and use for Tax calculations. The technical issue is that whenever the Net value=0, Vertex RFC is not called.
We have proposed to create a report in SAP which will tell them the order details with Free items but this is not acceptable to Business.
Has anyone worked on such scenario where Use tax is calculated on the Sales side for Free of charge items.

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Dear all!
Below it's described how the A/P-taxes have to be handeld in our company in Michigan, US. We want to use a very simple TAXUS-setup (No Jurisdiction). Actually we have problem in setting up the tax-scheme of TAXUS with the following cases:
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The first two involve invoices that are correct from the vendor and nothing special needs to be done. The
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2. The vendor DOES charge sales tax on items that are TAXABLE.
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We are using TAXUSX procedure since Vertex is active for output taxes in US. But for Use tax manual tax codes are maintained (Vertex is not purchased).
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Thank you in advance.

First, make sure that the tax relevant fields in these GL accounts Master are complete.
For TAXUSJ u2013 Tax code for a specific COA is U1
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Account Transaction Type: USA
Description: USA-Accrued Use Tax
Hope this helps,
<< Moderator message - Point begging removed >>
Thanks.
Edited by: Rob Burbank on Jan 17, 2011 4:17 PM

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Setting up use tax

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