Adding a estimated tax setup
To add the tax definition:
- Select Administration > Property > Taxes > Estimated Tax Setup.
- Click Add Detail.
-
In the
Tax Definition section,
specify this information:
- Property Name
- Specify the name of the property to which you want to link the tax definition.
- Rounding Method
- Specify the rounding method in case the estimated tax amount
includes Cents. Select one of these options:
- Nearest: The system rounds the amount to six decimal places. The digit at the 6th decimal place of the payable amount is rounded upwards, if the digit at the 7th decimal place is equal to or more than 5. The 6th digit is rounded downwards if the digit at the 7th decimal place is equal to or less than 4.
- Down: The system rounds the payable amount towards the lower value of the total amount.
- Up: The system rounds the payable amount towards the higher value of the total amount.
- Status
-
Specify the status of the Tax Definition. To use the tax definition you must set the definition to the Active status.
Note: You can set the Tax Definition to the Active status, only after you specify the values in the Tax Definition Details section.
- Save the record.
- Click Add Detail.
-
In the
Tax Definition Details
section, specify this information:
- Tax Definition Detail
- Specify the tax definition description.
- Tax Type
- Specify the type of tax that this definition represents.
- Tax Category
- The field is disabled and is populated by the system when you save the definition details. The tax categories are for additional classification of tax types. You can collect the data per category for later analysis.
- Method
- Specify the method based on which the tax is levied. Select
one of these options:
- Percent: The percentage amount that you specify is levied as tax.
- Flat Amount: The amount that you specify is levied as tax.
- Amount
-
Specify the percentage amount or the flat amount that must be levied as tax.
- Min. Amount
- The minimum amount that must be used to calculate the tax
estimate.
Note: If the minimum amount that you specify, is more than the amount calculated based on the specified percentage number, the minimum amount is used for tax estimation.
- Calculation Base
- Specify the base that must be taken when tax is calculated by
the system. This option is relevant when you specify the tax that must be
levied as a percentage. Select one of these options:
- Original Amount: Indicates that the tax must be estimated based on the original amount.
- Total Calculated So Far: Indicates that the tax must be estimated based on the amount calculated so far, with previous taxes included.
- Factor
- To calculate the total payable add-on charge, the option
that you specify in this field is multiplied by the tax amount. Select one of
these options:
- Room Count: The tax is calculated based on the number of rooms that are booked for a reservation.
- Reservation: The tax is calculated for each reservation based on the number of days for which the guests stay in the property.
- Status
- Specify the status of the tax definition. To use, you must set the definition to Active status.
- To save the record, click green Save icon.