Find out how business decisions would affect tax results, for example, how the tax rate would change if you opened a new business location in a different taxing jurisdiction.

1. Run a control transaction.
   1. Click the Tax Calculator tab in New Global Tax Determination Cloud.
   2. Do not change any of the settings in the Document-level settings except the except for currency type, which is set to USD by default but you can change it to another currency.
      Document date will automatically populate with today's date. The Tax Calculation Type is set to 1 - Forward Calculation. By default, Global Tax Determination will not save the transaction to the database for a test transaction.
   3. In the Locations section, under Location 1, select both the Ship To and Ship From locations, as the address of the store in the location will serve as both.
   4. Enter the address of the store, then click Get geo code for this address.
      If you do not know the exact location at this point, skip the street address, and enter the city, state, and ZIP code only.
   5. Select a Geo Code from the list.
      If you do not pick a Geo Code, Global Tax Determination will choose the most suitable Geo Code based on the address you entered.
   6. In the Line item settings section, leave the default settings: debit for payment type and type 1 - sale for transaction type.
   7. Optional: If you need to add a temporary tax obligation, you can do that now by selecting tax obligation/registration from the dropdown, selecting the type of obligation, and entering the local information.
   8. In the Line Items section, enter the net sales price of your product in the Gross Amount field. In this example, it is $50.
   9. Click Calculate Tax.

      • The first section contains the total tax calculated for this transaction; in this case, it is $4.51. Make a note of this tax amount as this is the baseline.

      • The Jurisdiction Summary section shows how this total tax is made up of the various state, county, and city-level taxes and what tax rates and tax amounts are charged on these levels. In the same section, the Tax Type column shows the tax type the calculator identified. For this transaction, it is Type 1, or sales tax.

      • If you scroll down the page, you can see the details of Line Item 1, which in this case are the same as the transaction summary since there was only one line item in this transaction. If you added more line items, the details of each line item would be listed separately under Line Item 1, Line Item 2, Line Item 3, etc., and the transaction summary would show the total value of those line items.

   10. Optional: Click View full details to see a list of the tax rules that were taken into account when calculating tax.
2. Apply Good/Service Codes.
   1. Click the Close icon to close the results of the test transaction.
   2. In the Line Items section, add the Good/Service Code that matches your product category to Line Item 1. In this example, it is 2038356, the Good/Service Code for General Clothing.
   3. Click Calculate Tax.
      This time, the total tax amount is $0.00. The Good/Service Code tells GTD that this item is clothing, which is exempt from sales tax in Minnesota, so no tax was calculated for this transaction.