ONESOURCEIDTIntroDeterminationParticipantGuide Global 2015.1.PDF.4b6o6a5

INTRODUCTION TO
DETERMINATION
PARTICIPANT GUIDE
2015
CONTENTS
EXERCISE 2.0: LOG ON TO DETERMINATION ...................................................................................................................................... 4
EXERCISE 3.0: RUN MULTI-LINE CALCULATION ON THE WORKBENCH ............................................................................................... 5
EXERCISE 4.0: TEST AN ESTABLISHMENT............................................................................................................................................ 7
EXERCISE 4.1: TEST REGISTRATION IN CANADA ................................................................................................................................. 8
EXERCISE 4.2: CREATE VAT REGISTRATION ...................................................................................................................................... 10
EXERCISE 5.0: EXEMPT A CUSTOMER ............................................................................................................................................... 12
EXERCISE 5.1: PARTIALLY EXEMPT A CUSTOMER ............................................................................................................................. 14
EXERCISE 5.2: EXEMPT A CUSTOMER/PRODUCT COMBINATION ..................................................................................................... 15
EXERCISE 6.0: PRODUCT MAPPING USING STANDARD PRODUCT CATEGORIES (EXAMPLE 1) .......................................................... 16
EXERCISE 6.3: TEST CUSTOM PRODUCT ........................................................................................................................................... 26
EXERCISE 7.0: LABEL A CUSTOM ATTRIBUTE .................................................................................................................................... 29
EXERCISE 7.1: CREATE A PRODUCT QUALIFIER ................................................................................................................................. 31
EXERCISE 9.0: CREATE A TRANSEDITOR ........................................................................................................................................... 33
EXERCISE 9.1: CREATE A REFERENCE LIST AND A RULE QUALIFIER ................................................................................................... 35
GLOSSARY ....................................................................................................................................................................................... 37
ABOUT THIS DOCUMENT
Copyright 2015 Thomson Reuters/Sabrix. All Rights Reserved. Proprietary and confidential information of
TR/S. Disclosure, use, or reproduction without the written authorization of TR/S is prohibited. Disclosure, use, or
reproduction without the written authorization of TR/S is prohibited.
INTENDED READERSHIP
The course is meant for those who will be working with Determination either directly (tax professionals) or indirectly
(implementers, developers, Thomson Reuters employees).
IN THIS GUIDE
This University-style class is intended to provide customers, partners, and new Thomson Reuters employees, with a
common understanding of Determination: its value proposition, place within in a client’s business processes, and
technology components.
3
EXERCISE 2.0: LOG ON TO DETERMINATION
If you have a pop-up blocker enabled, disable it for this session or for this instance.
Log on to Determination instance, as provided by your instructor.
1. Open an IE Web browser.
2. Enter the Determination instance web site (as provided by your instructor).
3. Enter in the logon and password information (as provided by your instructor).
4. Click Submit.
End of Exercise 2.0
4
EXERCISE 3.0: RUN MULTI-LINE CALCULATION ON THE WORKBENCH
We are going to create a simple invoice with two line items for this scenario. Begin by entering the invoice’s header
information – in the Invoice section – and then adding the individual invoice line information in the Lines section of the
page.
Menu Path: Menu  Workbench
Enter Header Data

1. From the Actions menu, select Add.
2. In the Scenario field, enter Multi-line sale.
3. In the Invoice section, verify that the Invoice Date is today’s date. If not, select it.
4. Change the Company Role to Seller.
5. Click Submit.
Enter Line Data

1. Enter the following data in the Lines section:
Main Tab
Field Name Data
Description Goods
Quantity 1
Gross Amt 1000
2. Click Submit.
3. Enter the following data on the second invoice line:

Main Tab
Field Name Data
Description Some goods
Quantity 1
Gross Amt 1000
4. Click Submit.
5. Click on the Locations tab.
6. In the Lines section in the lower portion of the screen, click the Line Data button to add shipping address
information for each line item.
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7. Enter the following data:
Locations Tab – Line Level Ship-from for Line #1
Field Name Data
Country US
State NY
City NEW YORK
Post Code 10029
8. Click Submit.
Locations Tab – Line Level Ship-to for Line #1

Field Name Data
Country US
State IL
City CHICAGO
Post Code 60305
9. Click Submit.
10. Select 2 from the Line drop-down list.

Field Name Data
Country US
State NY
City NEW YORK
Post Code 10029
12. Click Submit.

Field Name Data
Country US
State CA
City SAN FRANCISCO
Post Code 94130
13. Click Submit.
14. Click Results. View the standard sales tax rates applied for each line by using the View Results drop-down list.
End of Exercise 3.0
6
EXERCISE 4.0: TEST AN ESTABLISHMENT
In this exercise, you will turn off nexus in Illinois because your company is not established in that state.
Menu Path: Menu  Company Data  Established Authorities
Turn off Establishment
1. Expand UNITED STATES.
2. Expand ALABAMA (through) LOUISIANA.
3. Set the establishment for Illinois to None. You will receive a warning message. Click OK.
4. Set the Start Date for this change as 01/01/2015. You will receive a warning message. Click OK.
5. Click Submit. (You may have to scroll back to the top.)
Test Workbench Scenario

1. Verify that your Scenario reads Multi-line sale.
2. Verify that the Invoice Date is today’s date. If not, select it.
3. Click Results.
4. Select 1 from the View Results drop-down list (if not already selected).
5. Verify that you are not receiving tax as you are not established in Illinois.
End of Exercise 4.0
7
EXERCISE 4.1: TEST REGISTRATION IN CANADA
In this exercise, you will test that your company is registered for transaction taxes in Canada. Copy the Multi-line sale
Workbench scenario and modify the information as described below.
Enter Header Data
1. From the Scenario drop-down list, select Multi-line sale.
2. From the Actions menu, select Copy.
3. You will be prompted to rename the scenario. Enter Test Registration in Canada.
4. From the Currency drop-down list, select Canadian Dollar.
5. Click Submit.
Enter Line Data
1. Click the Locations tab.
2. Click Line Data.
3. Delete the previous shipping information from each line by clicking Clear. Then add the shipping information for
line one and two.
Field Name Data
Country CA
Province MANITOBA
4. Click Submit.

Field Name Data
Country CA
Province ALBERTA
5. Click Submit.

Field Name Data
Country CA
Province MANITOBA
6. Click Submit.
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Field Name Data
Country CA
Province QUEBEC
7. Click Submit.
8. Click Results. Notice that you are getting no tax results because you are not registered to collect tax in Canada
or any of the Canadian provinces.
End of Exercise 4.1
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EXERCISE 4.2: CREATE VAT REGISTRATION
To create an accurate Canadian VAT registration for our Alberta and Quebec sales, we must first register in Canada, as
well as in each province. In this exercise, you will first register your company in Canada for GST, and then create
registrations in Alberta and Quebec for the province-level taxes (in this case, PST and QST, respectively).
Menu Path: Menu  Company Data  Registrations
1. Change Tax Data Type to International Tax Data.
2. From the Actions menu, select Add Registration.
Search Results
Field Name Data
Authority Canada (click )
Registration Number 123456789RT
Start Date Today’s date
4. Click Submit.
You have now created the registration for Canada, which will calculate GST. Now, create the registrations for the
two provinces.
Search Results
Field Name Data
Authority Alberta (click )
Registration Number 1234567890AB
7. Click Submit.
Search Results
Field Name Data
Authority Quebec (click )
Registration Number 1234567890TQ
10. Click Submit.
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1. Verify that you have the scenario Test Registration in Canada selected.
3. Click Results.
Review each line item. In Alberta, there is only the standard Canadian tax rate of 5%.
(Note: Actual tax rates and totals may change from this screenshot due to fluctuations in tax requirements.)
In Quebec, the GST is added to the gross amount before the QST is calculated (tax-on-tax). Although the QST
tax rate is one number, the effective tax rate is the combined GST and QST rate.
End of Exercise 4.2
Note: Registration Numbers can also be sent in via the integration, and can also be tested in the Workbench.
Review the pre-loaded Argentina Sale scenario in the Workbench. Select the Registration Tab, or select Actions
> XML Input to verify the registration numbers. Show input XML for Argentina Sale WB
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EXERCISE 5.0: EXEMPT A CUSTOMER
Exempt a customer – Better Buy – from tax in California. In this scenario, you will create the customer and add the related
exemption details.
Menu Path: Menu  System  Companies
1. Select your test company from the list and click the Company Preferences tab.
2. Verify that your company can process exemption certificates. If it cannot, check Uses Exemption Certificates.
3. Set the Active Exempt Cert Customer Group field to use your own company.
4. Click Submit.
Add a Customer
Menu Path: Menu  Company Data  Exemptions and Licenses
1. From the Actions menu, select Add Customer.

Customer Tab
Field Name Data
Customer Name Better Buy
Customer Number 100
3. Click Submit.
Add a Certificate
1. From the Actions menu, select Add Certificate
2. Enter and select the following data:

Certificate Tab
Field Name Data
Number Better Buy California Resale Certificate
Valid From Today’s date
Expires Enter date 1 year from today
Tax Data Type United States Tax Data
Applies to California
Fully Exempt Check the box
3. Click Submit.
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3. You will be prompted to rename the scenario. Enter Exempt a Customer.
5. Click on the magnifying glass ( ) next to Customer Name and select the customer you want to use for this
workbench scenario (Note: If you only have Better Buy in your database, it will be selected automatically).
6. Click Submit.
7. Click Results.
Line #2 (which had a California ship-to address) will be exempt.
Scroll down to review the System Messages section in the Results window. Here you can view details on the
certificate that was applied as well as the amount of the exemption.
End of Exercise 5.0
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EXERCISE 5.1: PARTIALLY EXEMPT A CUSTOMER
In this exercise, we are going to partially exempt our previous transaction.
1. Select the Certificates radio button.

2. Click Search.
3. Select the Better Buy California Resale Certificate and click the Certificate tab.
4. Modify the data as shown below:

Certificate Tab
Field Name Data
Fully Exempt Uncheck the box
50 (you might have to scroll down to see the Basis
Basis % (Exemption Details)
% field)
5. Click Submit.

1. Verify that you have the scenario Exempt a Customer selected.
3. Click Results.
Line #2 (which had a California ship-to address) will be partially exempt at 50%.
Scroll down to review the System Messages section again. Notice that the percentage of the exemption is now
50% rather than fully exempt.
End of Exercise 5.1
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EXERCISE 5.2: EXEMPT A CUSTOMER/PRODUCT COMBINATION
You can not only exempt a product, but you can exempt a customer from tax on a specific product. In this scenario, test
the customer and exemption you have been working with, but add a specific product as described below.
1. Select the Certificates radio button.
2. Click Search.
3. Select the Better Buy California Resale Certificate and click on the Certificate tab.
4. Select the Fully Exempt check box.
5. Delete the 50% in the Basis field.
6. In the Product field (under Product Criteria), enter CAMERA (case sensitive).
7. Click Submit.

1. Verify that you have the scenario Exempt a Customer selected.
3. In the Product Code field in the Lines section, enter CAMERA (case sensitive) for line 2. (Note that you may
have to click Line Items to see the Product Code field.)
4. Click Submit.
5. Click Results.
6. Line #1 (which had a California ship-to address) will be exempt when you sell a camera to Better Buy.
End of Exercise 5.2
15
EXERCISE 6.0: PRODUCT MAPPING USING STANDARD PRODUCT CATEGORIES
(EXAMPLE 1)
In this exercise, we will map to the standard Determination product “Shipping by common carrier.” Like many products,
the taxability of shipping varies by state. For example, shipping by common carrier where the delivery terms are FOB
origin, freight actual cost, is exempt in California but taxable in Indiana as shown in the product taxability matrix (which is
available on the Knowledge Base).

3. You will be prompted to rename the scenario. Enter Product Taxability.
5. Change the Company Role to Buyer.
6. Delete the first line item by clicking Delete. When asked to verify the action, click OK.
7. Click Submit.
8. Copy the Some Goods line by clicking Copy next to line 1.
9. Enter the following data on line 2:
Main Tab – Lines:

Field Name Data
Description Delivery - CA
Product Code FEDEX
10. Click Submit.
11. Click Results. You should see tax charged on both California lines.
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Create Product Mapping
Next, we need to map “FEDEX” to the corresponding Determination product category (Common Carrier - FOB Origin;
Freight Actual Cost).
Menu Path: Menu  Company Data  Product Mappings
1. Verify that the Tax Data Type is set to United States Tax Data and the Product Group is set to US.
3. Enter a Product Code of FEDEX.
4. Click the Find icon ( ) next to the Product Category field. A new window appears.
5. Enter %fob origin in the Product Name field.
6. Click Search. Six matching products were found.
7. Select Common Carrier - FOB Origin; Freight Actual Cost (78.142).
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8. The product tree is now expanded so that you can see the product you chose and all similar product categories.
(Note: the search engine can be a real timesaver but it is sometimes easier to find the desired product category
by manually moving through the list, expanding one category at a time.)
9. Click Common Carrier - FOB Origin; Freight Actual Cost (78.142).
10. Click Submit.
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1. Verify that your Scenario reads Product Taxability.
2. Click Results.
3. From the View Results drop-down, select 2.
Note the “Shipping Exemption” Invoice Description; no tax has been assessed.
You can also see that no tax was assessed on the main Workbench screen, without even clicking Results.
End of Exercise 6.0
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(EXAMPLE 2)
In this exercise, we will map to the standard Determination product category of “Aircraft Engines” and then verify its
exempt taxability when sold within the UK.
Open Workbench Scenario

1. Verify that your Scenario reads UK Product Mapping.
3. Verify that the Company Role is Buyer.
4. Verify that the Currency is Pound Sterling.
5. Click Submit.
6. Click Results.
7. Verify that you are receiving standard tax for the UK.
We will need to map the Product Code “840710” to the corresponding Determination product category Aircraft engines.
1. Verify that the Tax Data Type is set to International Tax Data and the Product Group is set to Harmonized.
3. Enter a Product Code of 840710.
5. Enter AIRCRAFT ENGINES in the Product Name field.
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6. Click Search. One matching product is found. Select Aircraft engines (840710) in the Search Results menu.
7. The product tree is expanded so that you can see the product you chose and all similar product categories. (Note:
the search engine can be a real timesaver but it is sometimes easier to find the desired product category by
manually moving through the list, expanding one category at a time.)
8. Click the highlighted hyperlink for Aricraft engines and notice it is now populated in the Product Category field.
9. Click Submit.
10. The Product Code of 840710 is now mapped to the Determination Product Category of Aricraft engines.
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1. Verify that your Scenario reads UK Product Mapping.
2. If it is not already present, enter the following data in the Lines section for line 1:
Main Tab
Field Name Data
Description Services
Product Code 840710
Quantity 1
Gross Amt 1000
3. Click Submit.
4. Click Results.
5. The effective tax rate is reduced to 0%.
End of Exercise 6.1
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(EXAMPLE 3)
In this exercise, we will map to the standard Determination product category of “Life Insurance” and then verify its exempt
taxability in Singapore.

1. Verify that your Scenario reads Singapore Product Mapping.
3. Verify that the Company Role is Buyer.
4. Verify that the Currency is Singapore Dollar.
5. Click Submit.
6. Click Results.
7. Verify that you are receiving standard tax for Singapore.
We will need to map “INSURANCE” to the corresponding Determination product category (Services – Insurance Services
– Life Insurance).
1. Verify that the Tax Data Type is set to International Tax Data and the Product Group is set to Independent.
3. Enter a Product Code of INSURANCE.
5. Enter Life Insurance in the Product Name field.
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6. Click Search. One matching product is found.
7. Click the Search Results dropdown, and then click on Life Insurance to select it.
The product tree is now expanded so that you can see the product you chose and all similar product categories.
(Note: the search engine can be a real timesaver but it is sometimes easier to find the desired product category
by manually moving through the list, expanding one category at a time.)
8. Click the highlighted hyperlink for Life Insurance.
9. Click Submit.
10. The Product Code of INSURANCE is now mapped to the Determination Product Category of Life Insurance.
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1. Verify that your Scenario reads Product Mapping.
2. If it is not already present, enter the following data in the Lines section for line 1:
Main Tab
Field Name Data
Description Services
Product Code INSURANCE
Quantity 1
Gross Amt 1000
3. Click Submit.
4. Click Results.
5. The Invoice Description displays “Exempt Insurance Services” so no tax has been assessed.
End of Exercise 6.2
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EXERCISE 6.3: TEST CUSTOM PRODUCT
A situation might arise where the Content Management Group has not provided the product taxability for the commodity
you are buying or selling. In this case, you can set up your own custom products.
Note that custom products reside at a higher level of the Determination product hierarchy. As such, Determination will
never overwrite a custom product.
There are two ways to set up custom products in Determination:

• If the product will be fully exempt from tax, you can set up a product exception.
• If the product will be partially exempt, setting up a product exception will not meet your needs; you will need to set
the product taxability up in each taxing authority.
If the product will be partially exempt, or if the taxability of a product is complicated, setting up a product exception will
generally not meet your requirements. For complex taxation, set up the product taxability within each taxing authority.
Because Determination-delivered content needs to manage many complex tax challenges, the Content Management
Group always sets product taxability within each taxing authority.
In this scenario, we will first create a custom product and then exempt it from tax in a single tax authority.
View Header Data

1. From the Scenario drop-down list, select Product Taxability – Custom Products.
3. Click Submit.
4. Click Results.
At this point, our custom product does not exist in Determination, so you will receive the standard tax rates applicable to
the sale in both California and Pennsylvania.
Create Custom Product

Menu Path: Menu  Tax Data  Products
1. Verify that the Tax Data Type is set to United States Tax Data and the Product Group is set to US.
2. Select Custom Product Categories.
3. From the Actions menu, select Add Product.

Products - Edit Tab
Field Name Data
Product Name Widget
Description Widget for training scenario
5. Click Submit.
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After the custom product is set up, the next step is to map the product code. The product code enables us to apply a rule
to transactions. If the product code appears, the rule will be triggered.
1. Click on the Search tab.
2. Under Custom Product Categories, verify that Widget is selected.
3. From the Actions menu, select Add Product Mapping.
4. Enter W123 in the Product Code field.
5. Click Add.
Create Custom Product Rule

California has recently changed the taxability of widgets and now exempts widgets from sales tax. We will create a
product rule to recognize the product code and react by exempting widgets in the State of California tax authority.
Menu Path: Menu  Tax Data  Authorities  Basic Info (Rates and Rules)
1. In the Authority Name field, enter CA – STATE.
2. Click Search.
3. Select the returned authority.
4. Click the Cascading Rules tab.
5. From the Actions menu, select Add Rule.
6. Enter 100 in the Rule Order field.
7. Select the Exempt check box.
8. Click the magnifying glass next to Product Name.
9. Select Widget.
10. Enter a Start Date of today’s date.
11. Enter Widget exemption in the Invoice Description field.
12. Click Submit.
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1. Verify that your Scenario reads Product Taxability – Custom Products,
3. Click Results.
You can see that widgets are now exempt in California but are not exempt in Pennsylvania. In this case, both a
product and a rule exemption applied to all taxing authorities within California.
End of Exercise 6.3
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EXERCISE 7.0: LABEL A CUSTOM ATTRIBUTE
In SAP, as in many ERP systems, you have the ability to create a manual voucher to pay a supplier for a good delivered
or a service rendered. The voucher entry screen often does not allow you to capture much information about what is being
purchased. In particular, you will not be provided with any product information (e.g., product number, material group,
product category, etc.)
For this exercise, rather than looking for a product code, we are going to assume that your company’s G/L codes let you
know how a purchased item is going to be used.
We will begin with a basic invoice in the workbench that returns standard taxes and we will add a custom attribute. We will
also add the product qualifier that will look at the G/L code. In our company, we know that any G/L code of “5531” is
directly involved in the manufacturing process. By creating a rule in Determination that specifies that a G/L code equals
5531, then the commodity code is “Manufacturing Components and Supplies (31).”
In this scenario, manufacturing components and supplies are taxable in Alabama at a reduced rate. Manufacturing
components and supplies are exempt in Georgia.

1. From the Scenario drop-down list, select Buy Manufacturing Product.
3. Click Submit.
4. Click Results. Both line items should return the full tax.
Label a Custom Attribute

Label an extra piece of data, called an “attribute” that Determination can use in the tax determination process. These
custom attributes allow you to store additional information about your transactions, which you can then view as part of
audit data.
Menu Path: Menu  Logic Settings  Custom Attributes
1. On the Lines level, enter GL Account Code.
2. In a subsequent exercise, we will use another custom attribute called “Cost Center.” While you are creating the
custom attribute for this exercise, enter Cost Center as line-level Attribute 2.
3. Click Submit.
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4. After creating this attribute, you can view it in the Workbench under the Attributes tab (remember to click Line
Data).
End of Exercise 7.0
30
EXERCISE 7.1: CREATE A PRODUCT QUALIFIER
Now that we have created our scenario and custom attribute, create the product qualifier.
Menu Path: Menu  Logic Settings  Product Qualifiers
1. From the Actions menu, select Add Qualifier.
Product Qualifiers - Edit Tab

Field Name Data
Name Manufacturing GL Account 5531
Start Date Today’s Date
Commodity Code 31
3. Click Submit.
Add a Condition
Now, add a condition to the product qualifier to make it useful.
1. Click on the Conditions tab.
2. In the Element field, enter att and select line.user_element.attribute1.
3. From the Operator drop-down list, select =.
4. In the Value field, enter 5531.
5. Click Submit.

1. Verify that your Scenario reads Buy Manufacturing Product.
3. Click on the Attributes tab. On the bottom of the screen, click Line Data.
4. Make sure line 1 is selected on the left. Enter 5531 in the custom attribute GL Account Code at the line level.
5. Click Submit.
6. Make sure line 2 is selected on the left. Enter 5531 in the custom attribute GL Account Code at the line level.
7. Click Submit.
8. Click on the Main tab.
31
9. Click Results to see that the product qualifier was applied. You can also test another GL Account Code (such as
5621) to see an example where this scenario is not applicable.
End of Exercise 7.1
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EXERCISE 9.0: CREATE A TRANSEDITOR
In some cases, the address data in your financials system may not be complete, in that it does not contain the Plus4
portion of the ZIP code. This can be critical in determining the correct taxation as a single 5-digit ZIP Code may map to
more than one city or county, and can include addresses inside and outside of city limits.
When you know the Plus4 for a particular customer’s address, the best approach would be to modify the data in your
financials system to pass in the entire 9-digit ZIP code; however, this is sometimes not possible due to IT restrictions.
Instead, you can create a simple TransEditor to populate this data instead.
In this scenario, we will configure a ship to address that consists of only the 5-digit portion of the ZIP Code.
Rather than create the Workbench scenario, we will view the standard taxation results for a pre-existing scenario.
View Workbench Results

1. From the Scenario drop-down list, select TransEditor – Append ZIP+4.
2. Click Results. Note the tax rate. Because ZIP code 80401 defaults to within city limits, the tax includes standard
city of Golden sales and use tax rates, as expected.
Now configure a simple TransEditor to add the Plus4 portion of the ZIP Code to customer 12345467.
Create a TransEditor
Menu Path: Menu  Logic Settings  TransEditors
1. Make sure that the (EDIT) DEFAULT TransEditor group for your company is checked out (from the Group menu,
select Check Out Group).
2. From the Actions menu, select Add Editor.
3. Name your TransEditor Append ZIP+4 to Customer.
4. From the Actions menu, select Add Condition.
Field Name Data

Element/Expression LINE.CUSTOMER_NUMBER
Operator =
Constant 1234567
6. Click Submit.
7. From the Actions menu, select Add Action.
Field Name Data

Target Element LINE.SHIP_TO.GEOCODE
Constant 3768
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9. Click Submit.
10. Click on the TransEditors tab to view your completed TransEditor.

1. Verify that your Scenario reads TransEditor – Append ZIP+4.
3. Verify that your TransEditor Group reads (EDIT) DEFAULT (your company name). If not, select it and click
Submit.
4. Click Results and note the tax rate. Scroll down and note the TransEditor action. (TransEditor Action was applied
to Input XML. Action applied: LINE.SHIP_TO.GEOCODE = LINE.SHIP_TO.GEOCODE[null] = 3768). The city
sales and use tax authority is no longer included.
5. Return to the Main tab.
6. In the Line Data section, change the Customer Number from 1234567 to 1234568 and click Submit.
This new customer number does not have a 9-digit ZIP Code configured in the system, nor a TransEditor to
populate it.
7. Click Results and note the difference in the tax rate. The default address for ZIP Code 80401 is within the city
limits of Golden – while the ZIP +4 of 80401-3768 is outside city limits.
End of Exercise 9.0
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EXERCISE 9.1: CREATE A REFERENCE LIST AND A RULE QUALIFIER
Pennsylvania allows sales and use tax exemptions for purchases that are used in the R&D process. The Pennsylvania
auditor agrees that all purchases made by scientists in your Pittsburgh R&D lab are exempt, but you need to ensure that
the purchases not made by a scientist (i.e., items used by administrators and managers) are not exempted. Create a rule
qualifier to ensure the transaction will be exempt for department #65 for the cost centers on the following list only.
Cost centers that qualify for R&D tax exemption:

1. 65-1234
2. 65-1235
3. 65-1236
Rather than create the Workbench scenario, we will view the standard taxation results for a pre-existing scenario.
View Workbench Results

1. From the Scenario drop-down list, select Computer Purchase.
2. Click Results. The Workbench will return standard tax rates for both lines 1 and 2.
Before creating the rule qualifier, input the list of exempt cost centers into Determination. Do this by creating a reference
list.
Create a Reference List
Menu Path: Menu  Logic Settings  Reference Lists
1. In the Name field, enter Pennsylvania R&D Cost Centers.
2. In the Start Date field, enter today’s date.
3. Click Submit.
4. In the Selected Reference Value area, enter 65-1234, the first cost center in the Value box.
6. Click Submit.
7. In the Selected Reference Value area, add the remainder of the cost centers using Actions  Add until the list
is complete. (65-1235, 65-1236).
Create a Rule Qualifier

Now, create a rule qualifier for the state of Pennsylvania. Since this particular R&D exemption is honored by all
Pennsylvania tax authorities (i.e., the exemption cascades to the counties and cities), create a cascading rule.
Menu Path: Menu  Tax Data  Authorities  Basic Info (Rates and Rules)
1. In the Tax Data Type field, verify the name reads United States Tax Data.
2. In the Authority Name field, enter PA – State.
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3. Click Search.
4. In the Search Results area, select the PA – STATE SALES/USE TAX row.
5. Click on the Cascading Rules tab.
6. From the Actions menu, select Add Rule.
7. Verify that the Authority Type reads Any. If not, select it.
8. In the Rule Details area, enter 100 in the Rule Order field.
9. Check the Exempt check box.
10. Change the tax type to Tax Type = Consumer Use
12. Enter PA R&D exemption in the Invoice Description field.
13. Click Submit. At this point, everything purchased in PA will be exempt.
14. Click the Show Rule Qualifiers hyperlink.
15. From the Qualifier Type drop-down list, select List Condition.
16. In the Element field, begin typing LINE.USER_ELEMENT.ATTRIBUTE2; select it when it appears.
17. In the Operator field, select Exists In.
18. In the Reference List field, select Pennsylvania R&D Cost Centers.
20. Click Submit.
21. Select the Back to Rule Details hyperlink.

1. Verify that your Scenario reads Computer Purchase.
3. Click Results.
4. Verify that the administrator’s laptop is taxed at the full rate (line 1), while the scientist’s laptop is exempt (line 2).
End of Exercise 9.1
36
GLOSSARY
Authority: A governmental body that is charged with assessing or collecting tax.
Cascading Rates and Rules: Applies to all authorities of a specified type, such as county sales and use tax in California.
Cascading User Role: Role which, when granted for a user on a parent company, enables that user to have the same
role on all of that parent’s child companies.
Certificate: Document associated with a customer that defines both its applicability and the exemption it affords.
Child Company: Entity (such as a division, branch, or geographical location) that receives its master data from the parent
company.
Commodity Code: Optional method of identifying a product based on internationally recognized codes.
Company: Unique entity for which transactions are calculated and the results stored in the Audit Database.
Custom Attributes: XML elements at the line and invoice levels that enable you to pass in additional data not covered by
the standard set of elements; for example, you might pass in a GL Account Code, a Manufacturing Plant ID, or other
similar data.
Custom Authorities: Created to meet special needs such as excise tax, which is not directly provided by Determination
US or International Tax Data Providers; such authorities are user-defined.
Custom Data Provider: Determination company that shares its company configuration (such as custom products, rules,
and rates) with child companies in the system.
Customer: A business to whom you sell and for whom you maintain certificates that enable a reduction or exemption from
tax in specific cases.
Determination: Application that calculates tax based on your company’s configuration and Determination Content.
Establishments: The presence of your company within a particular authority that causes you to have nexus for that
authority/establishment.
Exempt Reason: Code passed in with a transaction that may trigger either certificate application or authority rule
application.
Exemption Certificate: Customer-specific exemption from paying partial or full tax based on transaction criteria.
ERP System: Enterprise Resource Planning software (such as Oracle Financials or SAP) – referenced in Determination
as your financial application.
ETL: Process that copies and reformats your data to make it available for use in Reporting.
Fees: Applies to a product within an authority; for example, a $5 state tire recycling fee.
Global Application Suite: Determination, Integrations, ONESOURCE Indirect Tax Reporting and Determination Content.
License: Document that shows a customer belonging to a class of users that receive the same tax treatment (in specific
cases).
License Type: Class of users defined by certain criteria, such as license mask or specific effective and end dates.
Limited Use Certificate: Document that is only applied if specific, custom input XML criteria is present in the transaction.
Integration: Software that facilitates the communication of data between Determination and your ERP system.
ONESOURCE Extract: Created from data imported into ONESOURCE Indirect Tax Compliance software, a returns
solution from Thomson Reuters.
ONESOURCE Indirect Tax Reporting: Reporting application that enables you to create period close, reconciliation, VAT
reporting and audit reports for your transaction data.
Parent Company: Entity, organization or figurehead that maintains master data shared among child transacting
companies.
Product: Good or service bought or sold by your company.
Product Category Name: A specific product in the product tree.
37
Product Code: Name by which you identify a product in your ERP system.
Product Group: A group of products that use similar taxability; these groups can be maintained separately or shared
between related companies.
Product Mapping: Required custom configuration that maps your product code to a product category name in the
Determination product tree.
Product Qualifier: Feature that allows you to specify custom attributes which, when evaluated together, drive the specific
product and taxability to be used for a transaction line.
Product Tree: List of products represented in Determination that result in specific product taxability (standard rate,
reduced rate, etc.).
Tax Data Provider: Determination company that provides default data for authorities, rules, rates, products and other tax-
specific data that is generic across all transacting company environments.
Transaction Extract: Report that lists details from all Audit transactions for the selected company(s).
TransEditor: Abbreviated term for transaction editor, it modifies the input XML before it is processed by Determination
Rates: Applies to a product within an authority; for example, a 7% sales tax rate.
Reference List: List of values that determine whether a specific TransEditor condition or rule qualifier is to be applied to a
transaction.
Registration: A document that states you are registered with an authority and may have potential tax liabilities for
transactions involving an address in that jurisdiction.
Role: Pre-defined list detailing what Determination pages can be accessed by a user, and what actions a user can take
on those pages.
Rules: Collection of basic criteria that defines what rate or fee is applied to a transaction.
Rule Output: Collection of user-defined data to return in the transaction output when the rule is applied.
Rule Qualifier: Rules that allow you to fine tune your tax rules to specific transaction scenarios through the use of four
conditions: authority, license, list, and rule.
User: Account in Determination that enables access to one or more companies.
Zone: A geographical segmentation of the world to which taxing authorities are mapped.
Zone Authorities: The mapping of authorities to a zone; each zone can have one or more authorities mapped to it and
each authority can appear in multiple zones; this defines the jurisdiction of the authority.
38
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INTRODUCTION TO

Log on to Determination instance, as provided by your instructor.

1. Open an IE Web browser.

End of Exercise 2.0

Menu Path: Menu  Workbench

Enter Header Data

Enter Line Data

3. Enter the following data on the second invoice line:

5. Click on the Locations tab.

Locations Tab – Line Level Ship-to for Line #1

10. Select 2 from the Line drop-down list.

11. Enter the following data:

Locations Tab – Line Level Ship-from for Line #2

12. Click Submit.

Locations Tab – Line Level Ship-to for Line #2

13. Click Submit.

End of Exercise 3.0

Menu Path: Menu  Company Data  Established Authorities

Turn off Establishment

1. Expand UNITED STATES.

2. Expand ALABAMA (through) LOUISIANA.

5. Click Submit. (You may have to scroll back to the top.)

Test Workbench Scenario

1. Verify that your Scenario reads Multi-line sale.

End of Exercise 4.0

Menu Path: Menu  Workbench

Enter Header Data

1. From the Scenario drop-down list, select Multi-line sale.

2. From the Actions menu, select Copy.

4. From the Currency drop-down list, select Canadian Dollar.

Enter Line Data

1. Click the Locations tab.

2. Click Line Data.

Locations Tab – Line Level Ship-to for Line #1

Locations Tab – Line Level Ship-from for Line #2

End of Exercise 4.1

Menu Path: Menu  Company Data  Registrations

1. Change Tax Data Type to International Tax Data.

2. From the Actions menu, select Add Registration.

3. Enter the following data:

5. From the Actions menu, select Add Registration.

6. Enter the following data:

8. From the Actions menu, select Add Registration.

9. Enter the following data:

10. Click Submit.

End of Exercise 4.2

Menu Path: Menu  System  Companies

1. From the Actions menu, select Add Customer.

2. Enter the following data:

1. From the Actions menu, select Add Certificate

2. Enter and select the following data:

1. Verify that your Scenario reads Multi-line sale.

2. From the Actions menu, select Copy.

3. You will be prompted to rename the scenario. Enter Exempt a Customer.

End of Exercise 5.0

In this exercise, we are going to partially exempt our previous transaction.

Menu Path: Menu  Company Data  Exemptions and Licenses

1. Select the Certificates radio button.

4. Modify the data as shown below:

Test Workbench Scenario

1. Verify that you have the scenario Exempt a Customer selected.

End of Exercise 5.1

Menu Path: Menu  Company Data  Exemptions and Licenses

1. Select the Certificates radio button.