Use these general steps to set up tax code information in the system.
In the
Tax Systems form:
Specify
Tax System 1.
Select
Tax Mode Area.
Specify a default tax code only in
Customer/Vendor Tax Code.
Open the
Tax Parameters form.
Make sure
Prompt for [Tax System
(1)] is selected.
In the
Tax Codes form, enter all the tax codes you will
use. State, county, city, and local taxes should be entered with Tax Code Type
set to
Rate. You should also have one tax code set up
as
Exempt.
In the
Address Tax Code Defaults form, set up default
tax codes by location for new customer and vendor records.
On the
Customer Ship-Tos form, for each customer
specify a tax code that was set up in Step 7 with a
Tax Code Type of
Rate.
On the
Vendors form, for each vendor specify a tax code
that was set up in Step 7 with a
Tax Code Type of
Rate.
Open the
Items form
Sales tab. For each item
that is taxable, the
Tax Code field should be
blank. If an item is not taxable, enter an exempt tax code in the
Tax Code field.
To test the tax system setup, open the
Customer Orders form and enter an order. For
total order taxing, check the information in the
Tax Info tab. The tax should
be filled in the
Tax Code field, and
freight and miscellaneous should be blank, even if they are taxable.
Print the
Order Verification report. Verify the tax amount
on this report before proceeding.
Tax amounts will be
placed on the Customer Orders form's
Amounts tab when shipping occurs. The Assess on Return and Deductible fields on the
Tax Codes form are only active for
vouchers.
This information is
not stored separately in the tax records. Do not change the flags mid-period,
since this will cause the report to change. If you want a change, enter a new
tax code with the desired values.
You cannot delete a
tax code if it is used in the Customers,
Customer Orders, or Estimates forms.