Tax Component Rate Edit MRAC

Identifies the tax rate for each component.

NOTE You must set up the Tax Components before you can set up the Component tax rate.

You can add or amend multiple tax component rates. The system maintains these rates by effective date and supplies the tax rate for a combination of tax component and tax type.

When a state adjusts its tax rates, constituent components (districts and cities) usually adjust component rates. Use Parent category and component to list child components which may change at the same time. They are maintained by effective date, are the rates of tax for a combination of Tax Component and Tax Type.

The following fields must be entered to define a tax rate:

• Type: The Tax type must currently exist on the system.
• Category. The Tax category must currently exist on the system.
• Component. The Tax component must currently exist on the system.
• Effective date: This must be the date on which the tax rate comes into force.

After you amend component rates, you can run a batch process to update tax rates. For each component rate that you add or amend, the batch process updates the total tax rates for each tax code with that component, provided you have not used the tax code in a transaction.

See Sales Invoicing Tax Rate by Component: Sales Order Processing.

See also

• Tax Component Rate List MRAO