Similar to electronic reporting, Microsoft is introducing a tax engine (TE) to set up and calculate taxes from a code-based approach to configuration. The new tax engine is highly configurable and lets business users, functional consultants, and power users configure tax rules that determine tax applicability, tax calculation, posting, and settlement, based on the legal and business requirements. The tax engine covers the following functional scopes:
Functional area |
Scope |
Tax administration |
|
Tax applicability |
|
Tax calculation |
|
Tax accounting |
|
Tax documentation |
|
Tax settlement |
|
Tax return |
|
Just like electronic reporting, the tax engine feature can be leveraged to implement tax-related requirements through configuration.