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Set up a legal entity and tax information for Ecuador

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This article explains how to set up a legal entity and tax information for a company that is located in Ecuador by using the Latin American (LATAM) features that are available in Microsoft Dynamics 365 Finance. A legal entity represents the company, and it contains the tax and legal attributes that are required for the rest of the LATAM configuration.

Prerequisites

Before you begin, open the Feature management workspace, and verify that the LATAM globalization expansion and LATAM globalization expansion – Ecuador features are enabled.

To create a legal entity, follow these steps:

  1. Go to Organization administration > Organizations > Legal entities, and select New.
  2. In the address setup, set up the address format for Ecuador.
  3. Go to Organization administration > Setup > LATAM > LATAM parameters.
  4. On the Concept and notes tab, in the Legal entity section, set a field as Activity.

Note

This procedure describes the main settings that are required for localization. You can set other fields as required for other Finance features that you must use.

Set up tax information

To set up tax information, follow these steps:

  1. Create a document class letter without a prefix. Use this document class letter in taxpayer and document class configurations.

  2. Go to Organization administration > Setup > LATAM > Tax ID type.

  3. Select New.

  4. In the Overview section, in the Tax ID type field, enter RUC (Unique Taxpayer Registry), which is one of the tax ID types for Ecuador.

  5. In the Format field, enter XXXXXXXXXX001 for RUC. Learn more in Tax ID types for Latin America.

  6. Go to Organization administration > Global address book > Addresses, select the country or region where the company is set up, and then select LATAM to add the RUC tax ID type. Learn more in Address setup for Latin America.

  7. Go to Organization administration > Setup > LATAM > Taxpayer type, and select New to create a record that represents organizations.

  8. In the Type field, select Sociedad. Then add the tax ID type and the document class letter that you created. Learn more in Taxpayer types for Latin America.

  9. Go to Organization administration > Organizations > Legal entities, and then, in the LATAM section, configure the following tax and legal information for the legal entity:

    • In the Taxpayer type field, select Sociedad to represent an organization.
    • In the Based in country/region field, select Ecuador.
    • In the Country document type field, select RUC.
    • Complete the country document number, including the tax ID number of the company.
    • In the Concept and notes section, in the first field, enter the company activity.
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