Hi,
The steps to configure for Tax Procedure.
OBBG - Assign Country to calculation procedure.

OBCO - Specify structure for Tax Jurisdiction code. For
country like U.S.A.
LG -> character length of first level of hierarchy within
your tax jurisdiction code structure.
LG -> Second level of hierarchy as above.
LG -> Third level of hierarchy as above.
LG -> Fourth level of hierarchy as above.
TX -> Tick if you want the system to determine taxes on a
line by line basis instead of determining them on a
cumulative basis
           per tax jurisdiction code.

OBCP - Define Tax Jurisdiction code
Dil -> Tick if you do not want tax amounts included in the
based amount used for calculating cash discounts.
Txl -> Tick if you want the cash discount amount deducted
from the base amount that is used to calculate taxes.

FTXP - Define Taxes on Sales/Purchases Code.

OBCL - Allow Tax codes for non-taxable transactions.

DEFINE SALES TAX:T.C:OBQ3
ASSIGN TAX PROCEDURE TO COUNTRY:T.C:OBBG
DEFINE TAX CODE:T.C:FTXP
DEFINE SALES TAX:T.C:FS00
DEFINE TAX ACCOUNT:OB40
ASSIGN TAX CODE TO SALES A/C:FS00
ENTRY POSTING:T.C:F-02