Here are the answers to our frequently asked questions about companies.
What is a company?
A company is a model of your business from a sales and use tax perspective.
Why can't I delete a company?
A company cannot be deleted if:
- Jurisdictions have been added
- A has been added
- AvaTax processed a for the company
Change the Company Status of any company that cannot be deleted to Inactive in place of deleting it.
What is a separate reporting entity?
Ais a that reports and files its transaction history independent from any parent company or child company with which it may be associated.
Any company can be a separate reporting entity by choosing Yes for Separate Reporting Entity in the Company Setup tab.
On the Organization tab, a separate reporting entity is indicated by an orange section mark § in the Company Code column.
What is the difference between a parent and a child company?
AvaTax lets you build a hierarchy of companies to model the business structure in your organization.
A company's hierarchy is based on two company types:
- Parent company
- A company that creates and maintains its own
- A parent company can have one or more child companies
- Child company
- A company that can inherit its tax profile from a parent company. A child company can have only one parent company
- A child company can act as a parent company to another child company
The parent company-child company relationship allows a child company to:
- Combine its transaction history with its parent company for tax returns and tax return reports
- Inherit its tax profile from its parent company