A ‘Jurisdiction Code’ used in countries such as the United States, is a combination of the codes defined by tax authorities. It is possible to define up to four tax levels below the federal level. The four levels can be the:
- Sub-city level
- City level
- Country level
- State level
Before you can use the jurisdiction codes for tax calculation, you need to define the following:
- Access Sequence (to include the country/tax code/jurisdiction fields)
- Condition Types (which references the access sequence as defined above)
- Jurisdiction Codes
The tax rates are defined in the tax code by jurisdiction. When posting taxes with a
jurisdiction code, note that the taxes may be entered per jurisdiction code or per tax
level.