In order to correctly handle Tax on purchases from the EU, you must set up at least one Tax business posting group for reverse charge Tax.

To enter basic information for reverse charge Tax on purchases

  1. In the Search box, enter Tax Posting Setup, and then choose the related link.

  2. In the Tax Posting Setup window, enter a combination of a Tax business posting group and a Tax product posting group and fill in the fields with general ledger account numbers.

  3. In the Tax Calculation Type field, select Reverse Charge Tax.

  4. Fill in the Reverse Chrg. Tax Acc. field with the relevant general ledger account number.

Repeat this procedure to set up as many combinations in the Tax posting setup as necessary.

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