Use this activity to define tax books. You must define at least one tax book
for the tax reporting process.
By defining more than one tax book,
you can separate tax transactions into sub ledgers so that you have more control
and flexibility for defining tax reports. As a simple example, you could define
a Purchase tax book. Later you could print reports that include only purchase
transactions, by simply selecting the appropriate tax book.
When you
define tax books, you also define whether the tax book will include all tax
codes or will be restricted to only specific tax codes. Defining tax books restricted
to certain tax codes enables you to create truly specialized tax books.
Note: When you define multiple tax books, keep in mind that each
tax code and tax direction combination (tax code + tax direction) can be used
in only one tax book. For example, if you have a tax code called VAST (Virginia
State Tax), VAST can be used in only one tax book defined with a Received direction.
It could be included in another tax book only if the second tax book had a Disbursed
or a Disbursed/Received direction. This also means that you can have multiple
tax books with a Received direction only if each is restricted to specific tax
codes. (You cannot define one tax book restricted to some tax codes in a Received
direction and then define another tax book that uses all tax codes in a Received
direction.) The minimum requirement is to define one tax book is, where
Tax Code = All and Tax Direction = DisbursedReceived.
If you set the Tax Code field to Restricted, you must specify the tax codes to use with the tax book before you can close the window. (Right-click and then click Tax Codes per Tax Book to open the window in which to specify the tax codes.)
If a tax series is to be connected to a tax ledger, it is mandatory to first define the tax series in Tax Series.
Different types of tax transactions will be separated into different tax sub ledgers (tax books).