Setting Up Tax Constants
Access the Taxes Initial Setup - ARG - 00 form.
- Number Access Tax Groups
- Enter a value that exists in the ARG - Item ANAT Allowed Values (76A/B7) UDC table. Examples are: - 1: Tax Area - 2: Tax Area / Co - 3: Tax Area / Co / Business Unit 
- Tax on Tax Y/N
- Enter a value that exists in the ARG - Item ANAT Allowed Values (76/A3) UDC table to specify whether tax is calculated on the tax amount. Values are: - Blank or N: No tax is calculated on the tax. - Y: Tax is calculated on the tax. Note:- The Tax on Tax functionality is applicable for Invoices in Sales Order Process and Account Receivable. Auto Cash Receipt will not process Tax on Tax. - Select N in the Tax on Tax Y/N field to indicate that the Auto Cash Receipt will not have the tax on tax calculation. 
- Validate Tax Letter
- Enter a value that exists in the ARG - Item ANAT Allowed Values (76A/A3) UDC table to specify whether the system validates the tax letter. Values are: - Blank or N: No - Y: Yes.