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Use this form to create the sales tax jurisdictions for which the company must collect sales tax. The sales tax jurisdiction functionality is designed for companies that operate in the United States, but is not a legal requirement. The form is available if an administrator enables the configuration key.

A sales tax jurisdiction is a grouping of sales tax codes for a particular settlement period (including the sales tax authority). Each jurisdiction is assigned one or more sales tax codes and has only one tax authority. Additionally, transactions that are posted for the sales tax jurisdiction are posted to the ledger posting accounts that are assigned to the tax account group that is selected in this form.

Some state tax authorities collect taxes for all the jurisdictions within the state. If a state has many jurisdictions and a complex tax code structure, using jurisdictions makes it easier for a company to pay correct tax amounts to the tax authority.

Note Note

A sales tax jurisdiction is not a geographical area. A geographical area can be covered by several jurisdictions, for example, a district, town, county, or state.

Tasks that use this form

Navigating the form

The following tables provide descriptions for the controls in this form.

Tabs

Tab

Description

Overview tab

Create the sales tax jurisdictions with unique identifiers, and select the settlement periods and the ledger posting groups.

General tab

View the tab information for the selected sales tax jurisdiction.

Buttons

Button

Description

Enter the sales tax codes that are required by the sales tax authority that is assigned to the selected sales tax jurisdiction.

You select a sales tax authority when you make a selection in the field.

Fields

Field

Description

Enter a unique identifier for the sales tax jurisdiction. If possible, create a code that allows you to identify the jurisdiction by the code alone.

Enter a descriptive name for the sales tax jurisdiction. Because the name appears on reports, it should be easily recognizable.

Select the interval in which the sales taxes for the sales tax jurisdiction code are calculated and paid.

The settlement period includes the terms of payment and the sales tax authority to which jurisdiction taxes are reported and paid. Create settlement periods in the form.

Select the ledger posting group for the selected sales tax jurisdiction.

Your selection in this field defines the general ledger accounts to which sales tax amounts for the sales tax jurisdiction are automatically posted. You create ledger posting groups in the form.

Select the currency code of the currency in which sales tax is calculated for the sales tax jurisdiction.

If the original transaction is in another currency, the tax is converted automatically to the currency that is selected in this field.

See Also