An automated setup program creates the codes you need to implement GTM, based on how your US taxes are currently defined. Before executing this program, you should understand the options it provides and the default logic it uses.

GTM codes for tax types, tax zones, and tax environments consist of text strings that uniquely identify the state, county, and city of a tax jurisdiction. Manual setup of these codes would be a tedious process, since there are thousands of them.

Therefore, by default, USA to GTM–Setup creates codes based on a set of rules. These rules systematically select characters from the state code, county name, and city name in the tax master.

To determine if the generated codes are appropriate for your company, run the setup and review the audit trail. If you need a different coding scheme, read the rest of this section and settings for the code generation rules as necessary. Then, rerun the setup with Delete Previous GTM set to Yes and Convert Tax Masters set to Yes.

Default Generated Code Formats in USA to GTM– Setup (2.13.22.5) lists the default generated code formats for US taxes.

The rules that determine the characters to select depend on two factors:

Code Generation Rules in USA to GTM–Setup (2.13.22.5) lists the default number of characters for each text string under the different conditions. However, you can change the number of characters and use a different separator or no separator, as long as the total number of generated characters—including the separator and any ending integers—is 16 or less.

The setup retains the capitalization from the original US code or name. If the original code or name contains punctuation such as a period, the code generation rules treat it the same as any other non-blank character.

By default, the conversion generates corresponding GTM tax classes for your current tax exemption codes. For example, for tax exemption 1, the conversion generates GTM tax class 1. You can override this by creating your own map for the setup program and specifying it in the Class File field. The same class file is also referenced in the programs that convert master data and transaction records.

You should create a class file if:

The class file is an ASCII file with text strings in the following format:

GTM tax classes can have a maximum of three characters and tax usage codes eight characters. An unused optional value is represented by a null string (either “ ” or “”).

The file name can have any name or extension. However, code values in .csv files must be separated by commas instead of blank characters. The file must be located in the home directory for the Progress session.

The generated codes for tax zones, tax environments, and tax types consist of text strings that identify the state, county, and city. By default, the code generation rules define the structure of these text strings. However, if you need a different naming convention, you can create geographic files for state codes, county names, and/or city names.

See Updates to Company Addresses.

In addition to supporting alternate naming conventions, such files can resolve code generation conflicts. For example, for state codes ARIZ and ARKA, the generated GTM code is AR. A state file is necessary to provide unique values.

USA to GTM–Setup creates records as described in New GTM Records.

The setup resets Global Tax Management Control (2.13.24) as described in Updates to GTM Control Settings.

In GTM, company sites require a corresponding company address record because taxes are calculated by address, not site. The setup creates any missing company address records for company sites. However, the setup does not populate these new address records with the city, county, state, and country. You must supply this information manually in Company Address Maintenance (2.12).

Also set up tax zone codes to support these new addresses if the setup did not already generate codes for these tax jurisdictions. Do this in Tax Zone Maintenance (2.13.3.13). Then, assign the tax zone to the address.

USA to GTM–Setup prints an audit trail of updated tax master records. For each record, the report shows the state/county/city combination, tax effective date, the tax rates for the effective date, and the taxable status of trailer charges. It also shows the corresponding generated tax zone and its sums-into tax zone.

After you run USA to GTM–Setup, verify that the GTM setup is correct before you continue with the conversion. The problems listed in Troubleshooting the GTM Setup can cause errors or unexpected values. Before you proceed to the master conversion, review the audit trail, the GTM reports for the new records, and Global Tax Management Control settings. Correct any problems before continuing.

Subsequent setups do not automatically overwrite records created by previous ones. To set up new records, you must first delete the old ones. If you rerun the setup, you must remove the records created by the earlier setup attempt by setting Delete Previous GTM to Yes and Convert Tax Masters to Yes.

The menu-level program for USA to GTM–Setup is txusacnv.p. This program calls subprograms (primarily txusatax.p) that set the GTM tax values in the individual database records. Changes to GTM Records lists the affected database tables and summarizes the changes.