If your company uses sales tax jurisdictions for the calculation and reporting of sales taxes, the configuration key for this functionality must be selected:

1. Click Administration> Setup> System> Configuration .

2. In the left pane, open the General ledgerfolder, and then open the Sales taxfolder.

3. Select Sales tax jurisdictions.

All U.S. companies: Click General ledger> Setup> Parameters . On the Sales taxtab of the general ledger parameters form, select the Apply U.S. sales tax and use tax rules

For more information, see Applying U.S. sales tax and use tax rulesand the field description in General ledger parameters (form).

Follow the list of setup activities in Sales tax. If your company plans to use sales tax jurisdictions, the step " Set up sales tax jurisdictions" is required.

After the sales tax jurisdictions are set up, you must attach them, in the Sales tax groups form, to sales tax groups. For more information, see Set up sales tax groups for jurisdictions.

The rest of the required setup of sales taxes is described in the setup list in Sales tax.