Tax engine - Use case configuration
Configure use cases to define when tax is calculated, where input values come from, and how tax amounts are calculated and posted.
Use cases
A use case describes a business scenario and the conditions for calculating tax. Application events trigger the calculation. You can enable or disable a use case to meet your business needs.
On the Tax Types page, select a tax type and choose Use Cases. Open a use case to review its configuration. The configuration includes the following elements:
Condition:
Determines whether the use case should run.
The following example illustrates conditions for a reverse-charge purchase invoice in a general journal. Blank cells in the last column represent blank values. The example shows individual comparisons, not a complete rule with condition grouping.
Operator Value Condition Value 2 "Applies-to Doc No." 'Not Equals' or "Applies-to ID" 'Not Equals' and "GST Vendor Type" Equals 'Unregistered' and "Account Type" Equals 'Vendor' and "Document Type" Equals 'Invoice' and "GST Bill-to/Buy-from State Code" Equals 'Location State Code' and "GST Group Code" 'Not Equals' and "HSN/SAC Code" 'Not Equals' and "GST Reverse Charge" 'Equals' 'Yes' Attribute mapping:
Maps required attributes to their value sources. For example, when a transaction line refers to a G/L account, an attribute mapping can get the HSN code from that account.
Rate parameter mapping:
Maps range and value columns to their value sources. If a tax rate matches, the tax engine returns its component percentages and output information. Examples:
Type Description Date This column is mapped with posting date of sales header and system analyzes whether the posting date comes in the range of ‘Date from’ and ‘Date To’. From State In case of sales, parameter 'From State' needs to be mapped with state of location code. To State In case of Sales, parameter 'To State' needs to be mapped with state of customer code. Use case variables:
Variables can be used at the time of computation of an intermediate value or defining validations in a use case. Example: showing alert message on tax execution.
Computation script:
This is an optional step, which will be used to store values in variables. Example: storing value of TDS Amount and adding INR 1000 freight to get the final amount.
Component formula:
Define ‘Component formula’ for the components, which are specific to the use case. Example: CGST = {“Line Amount” from “Sales Line”} * {CGST %} /100
Use case posting:
Use Posting Setup to select a posting entity and apply filters to find the record that supplies G/L accounts for the tax components. Account mappings can use a field or a lookup. For reverse charge, turn on Reverse Charge and map the reversal account. Posting fails if the configured filters don't find a posting setup record.
Tax ledger mapping:
Map calculated tax and other posting values to the fields of the tax ledger records created during posting. In the component's posting setup, use Tax Ledger Mapping to configure the records to insert. Use Posting Script for any additional calculations needed during posting.
Enable a use case
A use case must have Status set to Released before you can enable it. The tax type must also be enabled for the use case to run. On the Use Cases page, use Enable Selected Cases or Disable Selected Cases to control which use cases are available.
How to check tax information for a transaction
On supported transaction pages, the Tax Information FactBox shows tax attributes and calculated components. Only values configured as visible on the interface are displayed.
On supported statistics pages, the Tax Summary section shows the tax component totals.