Sales Tax Authorities
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Access this form using Maintain>Accounts Receivable>Sales Tax Authorities. |
Use this form to set up Sales Tax Authority information for all sales tax collected. Create a Sales Tax Authority for all entities served by your organization, such as city, county, and state.
Multicurrency Users
The Currency field is only available if the Administrator has installed and added the Multicurrency module. The Distribution Code field only displays codes that either share the same currency as the selected currency or have a currency of ANY. The Sales Tax Payable GL Account field only displays CSH type codes whose currency matches the selected currency or the organization's functional currency.
Sales Tax Authority ID: Enter the ID for the sales tax authority. We recommend using all numeric IDs. Numeric IDs are generally easier and faster to enter during transaction entry. We also recommend limiting your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoiding the use of symbols.
Description: Enter the description for the ID.
Tax Rate: Enter the tax rate percentage.
Currency: Select a currency from the drop-down list, such as USD, CAD, EUR, GBP, or MXN. The currency defaults to the organization's functional currency. Currencies were created and activated by the Administrator using the Organization>Currency Setup form.
Distribution Code: Enter or select the Distribution Code for the Sales Tax Authority.
Sales Tax Payable GL Account: Enter or select the General Ledger account code for the Sales Tax Payable account.
- After you create multiple authorities here, use Maintain>Accounts Receivable>Sales Tax Codes to combine authorities into one sales tax code.
- The functional currency was determined by the Administrator when the organization was created (File>New Organization>Functional Currency panel).