Sales Tax Codes
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Access this form using Maintain>Accounts Receivable>Sales Tax Codes. |
Use this form to create sales tax codes, which determine the tax rate when calculating sales tax. Later, a code is assigned to each customer required to pay sales taxes (Maintain>Accounts Receivable>Customers).
CANADIAN SALES TAX - If you are generating sales tax for Canada, select the Taxable (if applicable) and Print ID's Separately on Invoices check boxes.
Multicurrency Users
The Currency field is only available if you have installed and added the Multicurrency module. The ID column only displays tax authorities whose currency matches the selected currency or have a currency of ANY.
Code: Enter the code to identify the combination of Sales Tax Authorities, for example, 78751 for Travis County, Texas. We recommend using all numeric codes. Numeric codes 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 Code.
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.
Tax Freight: Select this check box if freight is taxable for the code.
Includes Sales Tax Authorities: All of these selections were entered using Maintain>Accounts Receivable>Sales Tax Authorities.
- ID: Select the Sales Tax Authority ID.
- Description: The system displays the ID's description.
- Distribution Code: The system displays the Distribution Code assigned to this ID.
- GL Code: The system displays the Sales Tax Payable GL Account associated with the ID.
- Tax Rate: The system displays the tax rate associated with the ID.
- Taxable: Select this check box to have the amount calculated for sales tax included in the next ID's calculation.
Print ID's Separately on Invoices: Select this check box if each ID selected should print separately.
Total Tax Rate: The system displays the sum of all selected ID's.
- If the Freight Charge Code is always taxable, select the Taxable check box on the Maintain>Accounts Receivable>Charge Codes form. If the Freight Charge Code is taxable in some states and not others, select the Tax Freight check box here, for each applicable Sales Tax Code.
- You must have previously created authorities using the Maintain>Accounts Receivable>Sales Tax Authorities form. Each sales tax code can contain multiple authorities, such as city, county, state, and other special tax entities.