Set up TCA classifications to classify third parties for tax purposes. You can define a TCA class category and class codes specifically for use in tax determination. You can also use standard classifications, such as the US Standard Industrial Classification (SIC) codes, and assign these codes a party fiscal classification.
You must set up and maintain TCA classifications before you can perform these tax-related setups:
Party fiscal classifications - Set up party fiscal classifications for your customers and customer sites and suppliers and supplier sites. Party fiscal classifications let you classify the customer/customer site or supplier/supplier site according to categories you define for tax-related purposes. See: Setting Up Party Fiscal Classifications for more information.
Party tax profiles - Assign party fiscal classifications to third party tax profiles to use in tax determination for invoices associated with the party. See: Setting Up a Third Party Tax Profile for more information.
Tax rules - Use the Party Fiscal Classification determining factor class to set up determining factor sets for use in tax rules. The Party Fiscal Classification determining factor class uses the party fiscal classification type defined for a TCA classification to identify the parties involved in a transaction. See: Setting Up Tax Determining Factor Sets for more information.
Use TCA administration to set up and maintain classifications for use in party fiscal classifications:
Class category - Set up a class category to represent the party fiscal classification type. These rules apply to enabling class category options for use with fiscal classifications:
Allow Multiple Parent Codes - You cannot enable this option. E-Business Tax does not allow the class codes in a hierarchy to have multiple parents.
Allow Parent Code Assignment - You can enable this option. E-Business Tax lets you use the parent code to represent a class code within the hierarchy.
Allow Multiple Class Code Assignments - You can enable this option. E-Business Tax lets you assign more than one class code to the same entity within the hierarchy.
Class codes - Set up class codes under the class category to represent the detailed classifications that belong to this class category. When you set up a party fiscal classification using a TCA class category, the related class codes by default become party fiscal classification codes.