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Reference data

Use licenses to group customers with common attributes

Licenses enable authorities to group customers that share common attributes.
For example, you may designate a customer who's an exporter in Ireland as a member of the Class 13a Trader group, which is subject to specific tax treatment.
In most cases, there's a specific document or relationship between the license holder and a tax authority that must be tracked and managed. Using the Licenses feature, you can manage the relationship of license types associated with a Determination Company, to individual licenses on a per-licensee basis.

Relationship between license type, licenses, and authorities

  • License Type:
     Defines a class of individual licenses, including effective date range, license number mask, temporary status, and other attributes. An individual license type isn't specifically tied to an individual authority; but can be used by multiple authorities if those authorities agree to a common format.
  • Individual License:
     A formal agreement between a specific customer and authority, usually represented by a physical document that often includes a license number. Each customer may have one or more licenses, which is always an instantiation of a License Type.
When a license gets evaluated in a transaction, the company that owns the customer group to which the license belongs, is searched for a matching license type. If no matching license type exists, the match fails and the license isn't applied.
Licenses are configured on the
Licenses
 page and can also be passed into the system in the <CUSTOMER_LICENSE> structure of the XML input.
License Types are triggered by 1 or more authorities using rule qualifiers that determine whether or not a particular rule should apply to a transaction.

Enable licenses

To enable licenses, you must:
  • Configure desired customers.
  • Configure desired license types.
  • Configure desired licenses for your customers.
  • Create the desired authority rules using rule qualifiers.

Calculation notes

Licenses passed with a transaction in the XML input affect transaction processing at the rule selection step. Once a candidate rule has been identified for the transaction that references specific license types, the process determines whether the customer has been associated with the specified license type. If so, the rule is accepted. Otherwise, the process disregards the rule and proceeds with the next candidate, subject to other rule qualifiers.
Tax ONESOURCE Determination Date gets used to perform all date-related acceptance tests for licenses and license types.

This article applies to:

  • Product: ONESOURCE Determination, ONESOURCE Indirect Tax
  • Subject: Licensing