Tax Code Adjustments

The optional Tax Code Adjustments allow State, County, Municipal, etc. tax codes to be defined and to have them accessible at the invoicing screen as needed.

Important: Once Tax Code Adjustment defaults are established at Accounting / Setup / Locations on the G/L Posting tab, they override any standard sales tax defaults in place.

Using Tax Code Adjustments

  1. Define the base taxes at Accounting / Setup / A/R / Sales Tax Codes. Enter any states in which sales might occur on the left and the various counties or local entities on the right. Sub Codes are available on the Adjustment Codes if the Adjustment Code is made up of multiple taxes. For instance, Rose County might have a 1% tax and Farmington, a city within Rose County, has a 0.75% tax. An entry could be made for Farmington for 1.75% with a Sub Code for the county and a Sub Code for the city tax.
  2. Tax Caps may also be defined on State Codes and/or Adjustment Codes. These are helpful if the taxing authority has a limit on the amount of tax applied to any single product. The entry into the Tax Cap field should be the maximum amount of tax that could be charged on the product. With this cap in place, the tax on the product will be the minimum of the calculated rate or the amount listed as the Tax Cap.
  3. Set the Tax Adjustment defaults for the State Code and Adj Code at Accounting / Setup / Locations on the G/L Posting tab. Double-click in each field and the corresponding setup list displays.
    Note: For Tax Adjustment Codes to be available for selection at invoicing, the default codes must be selected on the Location's G/L Posting tab.
  4. At invoicing, to alter the sales tax rate that defaulted, go to the Tax tab. Each line item displays with its tax information. If the tax rate should be changed to a different amount on all lines, enter the rate in the Rate field in the lower left corner and choose Apply to all products. The amount may be edited by individual lines, or State and Adj Codes may be selected if those codes were previously set up. After all necessary changes have been made, select the Invoice tab to return to the regular invoicing screen.