Configure Tax Calculation Procedures: Main Elements to Define

You want to configure the tax calculation procedures. What are the main elements you need to define?

There are 3 correct answers to this question:

1) Tax code

2) Country key

3) Sequence of steps

4) Condition type

5) Account or transaction key

Final answer:

To configure tax calculation procedures, the main elements to define are the Tax code, which is the identifier for tax rates; the Country key, which is the location applicable to the tax laws; and the Sequence of steps, determining the order of tax calculations.

Explanation: To configure tax calculation procedures, you need to define several main elements:

Tax code: A unique identifier for tax rates and the type of tax being applied.

Country key: This signifies the country for which the tax calculation is applicable, considering that tax laws vary by country.

Sequence of steps: The order in which tax calculations are processed, which can impact the final tax amount.

Although not among the three correct answers, the Condition type and the Account or transaction key also play roles in tax configuration. The Condition type refers to specific tax conditions such as tax rates, rebates, or surcharges that are applicable under certain circumstances, while the Account or transaction key is used to link the tax amount calculated to the correct general ledger account during financial postings.