Adding transaction codes to a tax group

Use the Transaction Code tab on the Tax Group screen to link the transaction codes to the tax group codes. You can also use the page to specify the criteria based on which the tax is calculated for each transaction code.

Note: 
  • You must create the Tax Group before linking the Transaction Codes to the Tax Group.
  • You can add a Transaction Code only once to a Tax Group.
  • You can select the transaction code and click Remove Record to remove a transaction code that is added to the Tax Group. The record cannot be deleted if a value is specified in the Option 1 or Option 2 field.
  1. Select Administration > Property > Taxes > Tax Groups. The Tax Groups screen is displayed.
  2. Select the Tax Group in the dataspy.
  3. Click Transaction Codes tab.
  4. Click Add Record.
  5. Specify this information in the Transaction Code Details section:
    Transaction Code
    The code and description of the Transaction Type.
    Tax Base
    The base to calculate tax. Available options:
    • Adult: The tax is calculated based on the number of guests classified as adult who are using the property. If you specify this option, the Tax Amount field is enabled.

      This option can be used only when you specify the Posting Type as Additional.

    • Amount: The tax is calculated based on the amount that is charged to the guest account.
    • Children: The tax is calculated based on the number of children who are using the property.

      This option can be used only when you specify the Posting Type as Additional.

    • Child Category(1-6): The tax is calculated based on the child category selected. If the Rate and Sales > Pricing > Child Categories is set to inactive, this option is not displayed.
    • Compound: The tax is calculated based on other taxes that are charged to the guest account and is known as Compound tax (tax on tax). You can specify up to two taxes in the Option1 and Option2 fields for compounding purpose.

      This option can be used only when you specify the Posting Type as Additional. You can specify the Posting Type as Inclusive only if you select the Enable Generate Inclusive check box on the Record View tab of the tax group.

    • Composite: You must specify a value in the Option1 field.
    • Greater: The tax is calculated based on a rate that you specify in the Alternate Tax Base field or amount charged on the room, whichever is higher.

      This option can be used only when you specify the Posting Type as Additional. You must specify the tax percentage.

    • Guests: The tax is calculated based on the number of guests who are using the property. If you specify this option, the Tax Amount field is enabled.

      This option can be used only when you specify the Posting Type as Additional.

    • Previous Net: The tax is calculated based on the previous net revenue charged to the guest account. You must specify the tax percentage.

      This option can be used only when you specify the Posting Type as Inclusive and set Inclusive Base to Net.

    • Room: The tax is calculated based on the primary account in the room regardless of the number of guests or separate folios in the room.

      This option can be used only when you specify the Posting Type as Additional.

    • Subtotal: The tax is calculated based on the amount charged to the guest account so far, with previous taxes included. You must specify the tax percentage.

      This option can be used only when you specify the Posting Type as Additional.

    Tax Amount
    The fixed amount that must be levied as tax. You can select one of these options in the Tax Base field:
    • Adult
    • Children
    • Child Category (1-6)
    • Room
    • Guest
    Tax Percentage

    The percentage amount that must be levied as tax.

    Posting Type
    Indicates the types of posting to the guest account for the tax transaction. Possible values:
    • Additional: The tax amount is posted in addition to the original posting. The guest account displays the original posting and all additional tax postings.
    • Inclusive: The tax amount is posted internally by the system. The guest account displays the total amount charged to the guest account and includes the taxes posted internally by the system. If you select this option, the Inclusive Base and Inclusive Tax Offset fields are enabled.
    Note: 

    • You must set the Posting Type to Inclusive and specify value in the Inclusive Tax Offset field if Enable Generate Inclusive check box is selected on the Record View tab of the Tax Group.

    • You must add a line with Posting Type as set to Inclusive before a line with Posting Type as set to Additional.
    Inclusive Base
    The value based on which the tax is calculated. Available options:
    • Gross: Tax is calculated based on the rate amount and other charges.
    • Net: Tax is calculated based on rate amount only.
    Note: This field is not available if the Enable Generate Inclusive field is selected on the Record View tab of the Tax Group.
    Minimum

    The minimum amount which must be levied as tax. 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 calculation.

    Note: 
    • If you specify the amount, the Condition Base field in the Condition Base Details section is not available.
    • If you specify a value in the Condition Base field in the Condition Base Details section, this field is not available.

    • If you select the Enable Generate Inclusive field on the Record View tab of the tax group, this field is not available.

    Alternate Tax Base
    The rate plan. The tax is calculated based on the rate plan or amount charged on the room, whichever is higher.
    Note: This field is enabled only if the Tax Base field is set to Greater.
    Additional Calculated as Inclusive
    Select this check box to specify the statutory tax rate to calculate the amount that includes the taxes. The conditions::
    • Additional Calculated as Inclusive is not allowed for additional taxes.
    • Additional Calculated as Inclusive is only allowed for Percentage based inclusive taxes.
    • Additional Calculated as Inclusive must be after records without Additional Calculated as Inclusive checked.
    Post as Additional
    Select this check box to post only the additional taxes. Post as Additional is used to have a tax that is calculated as inclusive and gets posted to the folio as an additional tax. In the case of a rate that is normally additional but needs to be inclusive of the quoted rate like with Additional Calculated as Inclusive, the tax is posted as an additional tax in the folio. You can select this check box only if:
    • Post as Additional required for additional taxes.
    • Post as Additional Allowed for Inclusive
    • Post as Additional not allowed on a Composite tax.
    • Post as Additional check box must be selected on Option1 or Option2 of a composite Tax.
    Consolidate on Invoice
    Select this check box to add the folio additional tax to the base charge on the tax invoice effectively reversing the Post as Additional impact. The conditions::
    • Consolidate on Invoice is allowed on an Additional tax base.
    • Consolidate on Invoice is allowed for Post As Additional option.
    • Consolidate on Invoice is not allowed for inclusive posting which is not Post As Additional.
    • Consolidate on Invoice is not allowed on a Composite tax base.
    Split for Share
    Select this check box to indicate that the tax is divided among the Shares.
    Note: 
    • This field is enabled only if the value of Tax Base field is set to Room, Room Type, Room Type Category, Net Rate Range, or Gross Rate Range.
    • The tax is split by the shared percentage among the shares and the rounding amount is applied to the primary guest. For example, If the Tax Per Room is $10.10 and is applied to 3 shares, the share percentage is calculated as 33.34(Guest1/Primary guest), 33.33(Guest2), 33.33(Guest3).
    Add to Composite Amount
    If this check box is selected, and the composite inclusive tax is not already included in the statutory rate, you can specify the statutory rate, not the rate that includes the inclusive tax amount. The conditions aref:
    • Add to Composite Amount is allowed on a composite tax base only.
    Option1
    The tax that is used for compounding (tax on tax). The tax is calculated based on other taxes that are charged to the guest account.

    This field is enabled when you select the Compound option in the Tax Base field.

    Option2
    The tax that is used for compounding (tax on tax). The tax is calculated based on other taxes that are charged to the guest account.

    This field is enabled when you select the Compound option in the Tax Base field.

    Adjust Amount by Percentage
    Select this check box to split the amount for the purpose of different tax rates. If this check box is selected, the Adjustment Percentage field is enabled.
    Adjustment Percentage
    The percentage based on which the amount must be split for the purpose of different tax rates.
    Note: 
    • This field is enabled when you select the Tax Base field to Amount,Compound, Composite, Previous Net orSubtotal.
    • The Adjustment Percentage check box must be selected.
    Adjust Amount by Valuation
    Select this check box to adjust the amount by valuation. If this check box is selected, the transaction code must have a code specified in the Valuation Adjustment Code field.
    Note: This field is enabled when you set the Tax Base field to Amount, Compound, Composite, Previous Net, or Subtotal or when the Condition Base field is Valuation Limit.
    Use Room Count
    Select this check box to use the room count on the room type to calculate the tax.
    Report As VAT
    Select this check box to indicate that taxes for this condition base should be reported as VAT. Refer to Understanding tax configuration by date range. This check box is enabled only if the TAXINV property parameter is set to Yes.
    Report as Tax Group
    The Tax group for an additional tax. The tax invoice reports the tax with the selected Tax Group instead of the tax group which is used to generate the tax. This feature is used to report an additional tax as VAT0. This field is used to select a VAT0 tax group, and this tax group is usually the same tax group that is associated with the tax transaction. This ensures that the tax is reported as VAT0 when the tax is posted manually and through a tax group.
    Inclusive Tax Offset
    The inclusive tax offset transaction code. The code description is populated by the system. This code cannot be the same as the transaction code.

    This field is enabled when you select the Enable Generate Inclusive field on the Record View tab of the tax group, or when you select the Composite option in the Tax Base field.

    Offset Transaction Code
    The offset transaction code.
    Note: The application does not offset the tax, if the Lease Tax Transaction Code is specified.
    Lease Tax Transaction Code
    The code used to summarize the tax for the lease with a different transaction code.
    Note: 
    • The Lease Tax Transaction Code must have the same Revenue Type as Transaction Code
    • This code cannot be the same as the Transaction Code.
    Lease Recognized Tax Offset
    The code used to offset the tax that is recognized. This code is used when the lease tax is summarized.
    • This code is applicable only for Inclusive Taxes.
    • This field is enabled only if the Lease Tax Transaction Code is specified.
    Lease unrecognized Tax Offset
    The code used to offset the tax that is not recognized. This code is used when the lease tax is summarized.
    • This code is applicable only for Inclusive Taxes.
    • This field is enabled only if the Lease Tax Transaction Code is specified.
    • The Lease Un-Recognized Tax Offset must have the same Revenue Type as Transaction Code
  6. Specify this information in the Condition Base Details section:
    Condition Base
    The condition base for tax calculation. Use this field to specify additional criteria based on which the tax is calculated. Available options:
    • Adult: The tax is calculated based on the number of guests classified as adult who are using the property.
    • Children: The tax is calculated based on the number of children who are using the property. If you specify this option, the Tax Amount field is enabled.

      This option can be used only when you specify the Posting Type as Additional.

    • Child Category(1-6): The tax is calculated based on the child category selected.
    • Amount: The tax is calculated based on the amount that is charged to the guest account.
    • Amount Limit: The tax is calculated on the amount that is charged to the guest account, if the amount is less than the specified maximum amount limit. No tax is charged after the maximum amount limit is reached. The Condition Operator is set to Greater.
    • Days: The tax is calculated based on the number of days for which a guest uses the property. The tax is not charged after the specified maximum number of days limit is reached.
    • Guests: The tax is calculated based on the number of guests who are using the property.
    • Valuation Limit: If the room charge is lower than the valuation amount, the valuation is capped by the room fee amount. The system does not post the full charge tax-free but applies a minimum amount to calculate the tax on. This minimum amount is defined in the Room Fee Amount field on room or room type level. This option must not be used if remaining valuation should be used for Hire, Service and Maintenance (valuation order fields are defined in the Lease Configuration page).
    Condition Operator
    The condition operator based on which the tax is calculated. Available options:
    • >: Indicates that the value that you select in the Condition Base field is less than the number that you specify in the Condition field.
    • <=: Indicates that the value that you select in the Condition Base is less than or equal to the number that you specify in the Condition field.
    • >: Indicates that the value that you select in the Condition Base field is greater than the number that you specify in the Condition field.
    • >=: Indicates that the value that you select in the Condition Base field is greater than or equal to the number that you specify in the Condition field.
    Condition
    The number of adults, children, guests who are using the property or the currency amount or the number of days for which a guest uses the property.
    Condition Tax Amount
    The tax amount that must be charged to the guest account.
    Condition Tax Minimum Amount
    The minimum tax amount that must be charged to the guest account. If the amount in the Condition Tax Amount field is less than the amount that you specify in this field, the minimum tax amount is charged to the guest account.
    Note: This field is enabled only if you select the Enable Generate Inclusive check box on the Record View tab.
    Tax Exempt Reason
    The reason for tax exemption.
    Adjustment
    Selcet this check box to indicate that the transaction code which is used to adjust or reverse the previously posted charges to an account. The field is enabled only if you specify a value in the Condition Base field.
    Adjustment Code
    The adjustment code.
    Note: The field is enabled only if you select the Adjustment check box.
  7. Set the check boxes in the Options section:
    Don’t Auto Adjust for Comps
    Select this check box to prevent the adjustment for the tax that is comped for the room charge.
  8. Click Save.