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Only specially privileged administrators have access to the tax administration tools:

• Tax Instance Setup defines a method of tax calculation used for a Tax Entity
• Tax Entity Setup defines a part of an Enterprise that has its own, unique tax treatment. Each Buying Organization must be assigned to one or more Tax Entity.
• Tax Usage Code Setup define exemptions to tax rules based on the intended use of a purchased item.
• Direct Pay Product Exemptions Setup defines catalog items that are exempt from direct payment of tax to state tax authorities. 
• Edit the long or short descriptions of Tax Category codes

In the tree menu, you can only see those option for which you have the appropriate privilege to access.

Creating a New Tax Instance

You must create Tax Instances first, defining the Tax Engine and Enterprise. Only after doing this, can you associate each Tax Entity with an appropriate Tax Instance:

1. In the tree menu, click Setup | Taxes | Tax Instance.
   
   
   The system displays the Tax Instance List page.
   
   
   
2. Click [New Tax Instance].
   
   The system displays the New Tax Instance page. 
   
   
3. Click in the Description text box (so that an |-beam cursor is displayed), and type a brief description of the tax instance.
   
   
4. Click in the Tax Engine drop-down menu, and select the name of an available Tax Engine, for example TaxWare. 
   
   
   If no other tax engine is selected, Commerce One Simple Tax is used by default.
   
   Depending on the tax engine selected, other data entry text boxes may be added to the page.
   
   
5. Click in the Host Machine Name text box (so that an |-beam cursor is displayed), and type name of the network machine on which the selected tax engine is running.
   
   
6. Click in the Tax Type drop-down menu, and select the type of tax to be calculated, for example VAT (value added tax) or SUT (sales/use tax). 
   
   
7. Complete making the other selections or entering data required by the selected Tax Engine and its added text boxes.
   
   
   
8. Click [Save].

Modifying a Tax Instance

1. In the tree menu, click Setup | Taxes | Tax Instance.
   
   
   The system displays the Tax Instance List page.
   

2. Click in the Description text box, and type:
   
   
   • all or part of the text appearing in an instance description, or
   • A wildcard character (*) to see all tax instances in the database
     
     
3. Click [Search]  
   
   The browser displays all tax instances matching your query and their information.
   
   
4. To sort the list by columns, click:

• The Tax Type hyperlink, or
• The Tax Engine hyperlink
  

5. If there are too many instances to be viewed in a single page, use the browser scroll bar, at the right of the window, to move the display up and down.
   
   
6. To view all of the information for an instance, use the browser scroll bar, at the bottom of the window, to move the display left and right.

7. Click [Delete] beside a Tax Instance to remove it from the database, or...
   
   
8. Click [Edit] beside a Tax Instance.
   
   
   The system displays the Edit Tax Instance page. 
   
   
9. Click in the displayed text boxes and drop-down menus, and make similar selections to those the New Tax Instance page.
   
   
10. Click [Save].

Creating a New Tax Entity

After creating your Tax Instances, you can create Tax Entities and assign them to Instances:

1. In the tree menu, click Setup | Taxes | Tax Entity.
   
   
   The system displays the Tax Entity List page.
   
   
2. Click [New Tax Entity].
   
   The system displays the New Tax Entity page. 
   
   
3. Click in the Name text box (so that an |-beam cursor is displayed), and type a brief name to identify the tax entity
   
   
4. Click in the Description text box (so that an |-beam cursor is displayed), and type a brief description of the tax entity.
   
   
5. Click in each of the Tax Instances drop-down menus, and select the name of a Tax Instance for each tax type.
   
   A drop-down menu in displayed for every Tax Type entry in the database, for example: SUT (sales/use tax), VAT (value added tax) or Goods and Service Tax.
   
   Each drop-down menu has an option for every Tax Instance of that type in the database, for example: TaxWare, Commerce One Simple Tax.
   
   
   If no other tax instance is selected, an instance using Commerce One Simple Tax is used by default.
   
   
6. Click [Save].

Modifying a Tax Entity

1. In the tree menu, click Setup | Taxes | Tax Entity.
   
   
   The system displays the Tax Entity List page.
   

2. Click in the Name text box, and type:
   
   
   • all or part of the text appearing in an entity name, or
   • A wildcard character (*) to see all tax entities in the database
     

3. Click [Search]  
   
   The browser displays all tax entities matching your query and their information.
   
   
4. To sort the list by columns, click:

• The Name hyperlink, or
• The Description hyperlink, or
  

5. If there are too many entities to be viewed in a single page, use the browser scroll bar, at the right of the window, to move the display up and down.
   
   
6. To view all of the information for an entity, use the browser scroll bar, at the bottom of the window, to move the display left and right.

7. Click [Delete] beside a Tax Entity to remove it from the database, or...

8. Click [Edit] beside a Tax Entity.
   
   The system displays the Edit Tax Entity page. 
   
   
9. Click in the displayed text boxes and drop-down menus, and make similar selections to those the New Tax Entity page.
   
   
10. Click [Save].

Creating a New Usage Code

To manage exemptions to tax rules based on the intended use of a purchased item, you must set up codes defining different types of usage:

1. In the tree menu, click Setup | Taxes | Tax Instance.
   
   
   The system displays the Usage Code page.
   
   
   
2. Click [New Usage Code].
   
   The system displays the New Usage Code page. 
   
   
3. Click in the Usage Code text box (so that an |-beam cursor is displayed), and type a brief name to identify the usage code
   
   
4. Click in the Description text box (so that an |-beam cursor is displayed), and type a brief description of the type of item usage defined by the code.
   
   
5. Click [Save].

Modifying a Usage Code

1. In the tree menu, click Setup | Taxes | Usage Code.
   
   
   The system displays the Usage Code page.
   

2. Click [Delete] beside a Usage Code to remove it from the database, or...
   
   
3. Click [Edit] beside a Usage Code.
   
   The system displays the Edit Usage Code page. 
   
   
4. Click in either the Usage Code text box or the Description text box, and type new information similar to that you supplied in the New Usage Code page.
   
   
5. Click [Save].

Creating a New Direct Pay Product Exemption

To manage exemptions to direct tax payment based on types of item:

1. In the tree menu, click Setup | Taxes | Direct Pay Product Exemption.
   
   
   The system displays the Direct Pay Product Exemptions page.
   
   
2. Click [New Exemption].
   
   The system displays the New Direct Pay Product Exemption page. 
   
   
3. In the State text box, click on a code, representing a state, group of states or nations for which an exemption should apply.  
   
   
4. Click in the UNSPSC Code text box (so that an |-beam cursor is displayed), and type an UNSPSC code representing the type of item that is to be exempt from direct payment of tax.
   
   
5. Click [Save].

Modifying a Direct Pay Product Exemption

1. In the tree menu, click Setup | Taxes | Direct Pay Product Exemption.
   
   
   The system displays the Direct Pay Product Exemption page.
   

2. Click in the State text box or UNSPSC Code text box, and type:
   

• All or part of state name, abbreviation or UNSPC code, or
  
• A wildcard character (*) to see all Exemptions in the database
  

2. Click [Search]  
   
   The browser displays all Exemptions matching your query and their information.
   
   
3. To sort the list by columns, click:

• The State hyperlink, or
  
• The UNSSPSC Code hyperlink, or
  

5. If there are too many Exemptions to be viewed in a single page, use the browser scroll bar, at the right of the window, to move the display up and down.
   
   
6. To view all of the information for an Exemptions, use the browser scroll bar, at the bottom of the window, to move the display left and right.
   

7. Click [Delete] beside an Exemption to remove it from the database, or...
   
   
8. Click [Edit] beside an Exemption.
   
   The system displays the Edit Direct Pay Product Exemption page. 
   

9. In the State text box, click on a different code, representing a state, group of states or nations for which an exemption should apply, or...  
   
   
10. Click in the UNSPSC Code text box (so that an |-beam cursor is displayed), and type a different UNSPSC code representing the type of item that is to be exempt from direct payment of tax.
    
    
11. Click [Save].   

Modifying a Tax Category

You can only edit Tax Categories descriptions. You cannot add or delete Tax Categories. 

1. In the tree menu, click Setup | Taxes | Tax Category.
   
   
   The browser displays the Tax Category List page containing a list of Short Descriptions and Long Descriptions for all current Tax Categories.
   

2. Click Edit beside any Short Description.
   
   The browser displays the Edit Tax Category page. 
   
   
3. Click in the Short Description text box, and type any necessary changes to the short description seen by users. 
   
   
4. Click in the Long Description text box, and type any necessary changes to the more detailed description reserved for administrators. 
   
   
5. Click [Save].

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