Adding a tax group

To add a tax group:

  1. Select Administration > Property > Taxes > Tax Groups. The Tax Groups screen is displayed.
  2. Click New Record.
  3. Specify this information:
    Property
    property The code of the property to which the tax group is linked.
    Effective Date
    The date on which the tax group becomes effective.
    Note: You can create multiple tax groups for a group that already exists if the Effective Date for the group is different.
    Rounding
    The rounding method to be applied if the total tax amount that must be posted to the guest account includes Cents (or lowest denomination of the currency that you are using). The rounding method determines how the calculated tax is rounded to the number of decimal places specified for the currency. Available options:
    • None: The system uses the actual amounts without any rounding.
    • Normal Rounding: This is the default setting. If the decimal places that must be used for a currency are not specified, the system rounds the tax amount to six decimal places. For example, 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.
    • Round Up: The system rounds the digit at the 6th decimal place of the payable amount upwards, if the digit at the 7th decimal place is equal to or more than 1.
    • Truncate: The system discards the cents and posts the whole dollar amount.
    Cumulative Tax Amount
    The sum of all the tax amounts defined for the tax group.
    Note: 
    • You can define the tax amounts for the tax group in the transaction code, on the Transaction Code tab. This is a display field.
    • By default, the application displays the value.
    Cumulative Tax Percentage
    The sum of all the tax percentages defined for the tax group.
    Note: You can define the tax percentage for the tax group in the transaction code, on the Transaction Code tab.
    Enable Generate Inclusive
    Select this check box to break the charge posted to the guest account into the net amount and use this net amount to calculate tax. The tax is calculated for each net amount. If you clear the check box, the system calculates the tax based on the Posting Type specified on the Transactions Code tab.
    Note: 
    • By default, this check box is selected..
    • You must select the Posting Type as Inclusive on the Transactions Code tab. By default, the application displays an error if Posting Type is other than Inclusive.
    • You cannot specify the value in Inclusive Base, Minimum, and the Condition Tax Minimum Amount fields on the Transaction Code tab.
    • You can set Posting Type to Inclusive when the Tax Base field is set to Compound on the Transaction Code tab.
    Inclusive Tax Adjustment to House
    Select this check box for the system to credit the adjusted inclusive taxes back to the guest account.
    Note: The adjusted inclusive taxes are in the accounts related to the property if this check box is not selected.
    Folio
    The folio to which the tax is posted.
    Note: 
    • All the folios are associated with the guest account.
    • You can use the folios to separate the charges when the guest, The property, requires separate billing.
    VAT 0%
    Select this check box to indicate that the zero percent VAT is applied for this Tax Group.
    Note: 
    • This check box is displayed only if the TAXINV property parameter is set to Yes.
    • The Install Parameter to enable Tax Invoicing must be selected.
  4. Click Save button.