Composite Tax Groups & Multi-Tier Rates

Create and activate component tax rates before using a tax group. Confirm whether the group is additive or compound in the actual configuration.

1. 1
   Add rates to the group in the required order and choose the supported computation mode.
2. 2
   Use a sample line amount in a preview to compare each component and the total before applying the group to live documents.
3. 3
   Preview a representative transaction using the group before the team applies it broadly.
4. 4
   Check each component rate and the total treatment with Finance or your tax adviser.
5. 5
   Check posted tax lines and reports against the same component rates.

A group is a configured combination of tax treatments. Its effect depends on the transaction and date.

For additive groups, component taxes use the original taxable base. For compound groups, later components may include earlier tax in their base according to configured order. Do not substitute a universal jurisdictional formula.

WARNING: Changing group order or components changes future calculated totals. Review the preview and posting accounts first.

If totals differ from expectation, check the taxable amount, rate type, calculation order, tax-inclusive setting, and rounding shown in the tax preview.

If tax looks wrong on a draft, correct the source selection before posting the document.