Tax Codes

Tax Codes are used to define an individual tax jurisdiction, and the tax rates that apply in that area. A tax code can consist of up to eight tax types, each of which are named in the Setup Company screen, in the Tax section. Customers, vendors and transactions can then have tax codes assigned to them in order to determine the proper tax rate to apply. The taxes then are reflected in transactions and are easily paid to the appropriate authorities using the Pay Taxes wizard.

3)	If you will be calculating tax on purchases for VAT/GST, be sure to select the option provided in the Setup Accounts Payable section.

4)	Add a tax code for each jurisdiction or rate structure to define the tax rates to charge for each tax type.

6)	You can also specify a tax code to use for a particular Customer (or Vendor, if using VAT/GST).

7)	When adding items to supertrack inventory, select the tax type(s) which apply to the item. This will determine which taxes get charged for the particular item.

Enter an alphanumeric value to identify the tax code. This value must be unique for each tax code entered.

Enter or select the date that this tax rate becomes effective. Tax code rates may be changed over time. This value is used to determine whether the old or new rate should be used.

Enter a description for the tax rate. This value is used to identify the tax structure on lists and reports.

Enter a description of the region that this tax code covers. This value is used to provide region selection for e-commerce taxation.

Displays the amount to which the total of transactions will be rounded to. The tax amount will be adjusted accordingly to force-fit the transaction total. This setting will only change from "Nearest .01" when a country is selected in Setup Company that requires their transactions to be rounded to a different coin. For example, choosing Australia in the Company Setup as your country will set this field to "Nearest .05" since this country's lowest coin denomination is AUS$0.05.

When checked, charges no taxes on any transaction where this tax code is present.

When checked, allows for one tax amount to be calculated and added to the sub-total. Then another tax amount is calculated based on the new subtotal.

When checked, the program will calculate the tax amount using the lowest selling price on the supertrack inventory record instead of the sale price if the sale price is lower.

The above field may be used to charge full taxes for an item, even if the item was sold at a significant discount.

When checked, the program will include freight charges in the taxation calculation.

When checked, this tax code will no longer be available when adding new customers and transactions.

Select whether a percentage tax, flat rate dollar amount of tax, tax based on net weight, or value added tax (VAT) is charged on each item sold. Then place the percentage or dollar amount in the field following. A tax type will be present for each tax type defined in the Taxes category of Setup Company.

Enter an alphanumeric value to represent the taxing authority that collects this tax type. This value is used to group common tax types for reporting purposes.

Enter or select the general ledger account you have set up for the tax liability created when making a sale transaction. One tax liability GL account will be available for each tax type. This account will be credited for taxes collected. This value overrides the account provided in the GL Posting section of Setup Accounts Receivable, if any.

This tab is only available if the check box labeled "Tax calculated on another tax exists for this tax code entity" has been checked.

Select the tax type that needs another tax to be calculated first. More than one type may be selected in total, but only one at a time may be modified.

When checked, the program will calculate this tax first and add it to the sub-total. The tax selected above will be subject to the new sub-total, including tax.

A01.	Enter a new tax code record, using the same code, but with a new effective date and new rates. On the effective date, the new rates will automatically take effect.

A02.

Most taxing authorities will tax liquor, wine, and spirits based on their weight, rather than on their price. The net weight tax option allows a company to add tax to an invoice based upon the weight or volume of an item, rather than it's price. This tax is found by multiplying the net weight found on the supertrack inventory item's detail tab by the quantity by the dollar amount found on the tax code record.

A03.	Choose Setup Accounts Payable and click on the General Options section. Select the option to "Allow tax on purchases for VAT/GST." Note that VAT/GST can only be used when the Country setting (Setup Company) is set to something other than United States.



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