Can we not use SLA rules to derive / modify the accounting for E-Biz Tax accounting?
Can we not use SLA rules to derive / modify the accounting for E-Biz Tax accounting? “Sometime back we were trying to setup a new company in under an existing Operating Unit. This meant that we had more than one Balancing segment value ( which we have labelled Business Unit) in the same Operating Unit. In AR we created new Transaction Types to be used for the new Business Unit ( Company). The Business Unit value for Revenue and Tax accounting had to change based on the Transaction type. We tried using SLA to derive the Tax accounting based on the Transaction Type on the AR Invoice but found that we could not build SLA rules for Tax accounting. That to me seemed restrictive and odd. We eventually found that we can modify the Auto Accounting configuration for Taxes and sourced the Business Unit value from Transaction Type even when Ebiz tax is used and used that. However I was very surprised I could not do the same with SLA , which seems like the right place to do this.”
You can use SLA but the tax accounts are only changed during the posting to the GL so the user will not really know if the correct account has been used during import. I have not tried it but the autoaccounting rules for the balancing segment should work.
The other approach is to set the tax logic up to use the Legal entity for the tax, rather than the OU. This means in your case you would have had 2 legal entities under the one OU and you need to set the ‘inherit from legal entity’ to yes for the party classifications for the OU. you can then create a tax rate and link it to the configuration owner – that being the LE instead of making the tax rate global.
I would always push for a separate OU for each new legal entity set up as with MOAC, there is too many benefits for having the separate OUS and in this case you just set the taxes up as globally owned rather than LE owned. Also – you need to set the tax rates up using the tax configuration–> tax rates rather than doing them with the regime to rate function otherwise you cannot set them to a different LE. Another downside to this is that you need to create the tax rates for every LE and rules also.
In AP – you can change the LE used by changing the value in the ‘Customer Taxpayer ID’ field.
So it is possible but messy.