Specifying the tax calculation formula

Use the transaction code that you set up in the steps below to specify the basis on which the taxes are calculated. Refer to Adding transaction codes to a tax group.

To specify the tax calculation formula:

  1. Select Administration > Property > Setup > Transaction Codes The Transaction Codes screen is displayed.
  2. Click New Record or double click an existing transaction code that you want to use.
  3. Click New Record.
  4. Specify this information:
    Transaction Type
    Specify the transaction type as Tax.
    Revenue Type
    Specify the revenue type as Tax Charge.
    Allowed Posting Areas
    Select all the check boxes except System.
  5. Select Administration > Property > Taxes > Tax Groups.
  6. Select the tax group that you have set up. Refer to Setting up a transaction group and transaction code
  7. Click Transaction Codes tab.
  8. Specify this information:
    Transaction Code
    Specify the transaction code that you have created in the steps above.
    Tax Base
    Specify the value Amount.
    Tax Percentage
    Specify the tax percentage that you want to levy.
    Posting Type
    Specify the value Additional.
  9. Select Front Desk > Guest Stay.
  10. Click the Folio tab.
  11. Specify this information:
    Folio
    Specify the Guest Folio option. Refer to Posting transactions to folios.
    Transaction
    Select the transaction code that you have created for applying the taxes. Refer to Setting up a transaction group and transaction code.
    Amount
    Specify the amount that you want to post to the guest folio.