Adding transaction codes to a tax group

Use the Transaction Code tab on the Tax Group page 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: 
  • Before you can add transaction codes to a tax group, you must add the tax group.
  • You can add a transaction code only once to a tax group.
  • To remove a transaction code that is added to the tax group, select the transaction code and click Remove Record.

To add transaction codes to the tax group:

  1. Select Administration > Property > Taxes > Tax Groups.
  2. On the List View tab, double click a tax group to which you want to add transaction codes.
  3. Click Transaction Codes tab.
  4. Click Add Record.
  5. In the Transaction Code Details section, specify this information:
    Transaction Code
    Specify the transaction code. The code description is populated by the system.
    Tax Base
    Specify the base for tax calculation. Select one of these 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
    Specify the flat amount that must be levied as tax. You can specify the tax amount if you select one of these options in the Tax Base field:
    • Adult
    • Children
    • Child Category (1-6)
    • Room
    • Guest
    Tax Percentage

    Specify the percentage amount that must be levied as tax.

    Posting Type
    Specify how the tax transaction must be posted to the guest account. Select one of these options:
    • 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: 

    • If you select Enable Generate Inclusive on the Record View tab of the tax group, you must select the Posting Type as Inclusive and must specify a Inclusive Tax Offset.

    • A line with Posting Type as Inclusive must be configured before a line with Posting Type as Additional.
    Inclusive Base
    Specify the value based on which the tax is calculated. Following are the available options:
    • Gross: Tax is calculated based on the rate amount and other charges.
    • Net: Tax is calculated based on rate amount only.

    If you select the Enable Generate Inclusive field on the Record View tab of the tax group, this field is disabled.

    Minimum

    Specify 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 disabled.
    • If you specify a value in the Condition Base field in the Condition Base Details section, this field is disabled.

    • If you select the Enable Generate Inclusive field on the Record View tab of the tax group, this field is disabled.

    Alternate Tax Base
    Specify the rate plan. The tax is calculated based on the rate plan or amount charged on the room, whichever is higher.

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

    Additional Calculated as Inclusive
    If this check box is selected, you can specify the statutory tax rate to calculate the amount that includes the taxes. To use this check box, following conditions must be met:
    • Additional Calculated as Inclusive not allowed for additional taxes.
    • Additional Calculated as Inclusive only allowed for Percentage based inclusive taxes.
    • Additional Calculated as Inclusive must be after records without Additional Calculated as Inclusive checked.
    Post as Additional
    If this check box is selected, you can post only 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. To use this check box, following conditions must be met:
    • 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
    If this check box is selected, the folio additional tax is added back in to the base charge on the tax invoice effectively reversing the Post as Additional impact. To use this check box, following conditions must be met:
    • 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.
    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. To use this check box, following conditions must be met:
    • Add to Composite Amount is allowed on a composite tax base only.
    Option1
    Specify 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
    Specify 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 the 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
    Specify the percentage based on which the amount must be split for the purpose of different tax rates.

    This field is enabled when you select the Amount, Compound, Composite, Previous Net, or Subtotal options in the Tax Base field.

    Adjust Amount by Valuation
    Select the 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.

    This field is enabled when you select the Amount, Compound, Composite, Previous Net, or Subtotal options in the Tax Base field or when you select the Valuation Limit option in the Condition Base field.

    Use Room Count
    Select the check box to use the room count on the room type to calculate the tax.
    Report As VAT
    Select the check box to indicate that taxes for this condition base should be reported as VAT. Refer to Understanding tax configuration by date range. This checkbox is enabled only if the TAXINV property parameter is set to Yes.
    Inclusive Tax Offset
    Specify 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
    Specify the offset transaction code.
    Note: The application does not offset the tax, if the Lease Tax Transaction Code is specified.
    Lease Tax Transaction Code
    Specify 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
    Specify 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
    Specify 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. Optionally, in the Condition Base Details section, specify this information:
    Condition Base
    Specify the condition base for tax calculation. Use this field to specify additional criteria based on which the tax is calculated. Following are the 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
    Specify the condition operator based on which the tax is calculated. Select one of these values:
    • >: 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
    Specify the tax amount that must be charged to the guest account.
    Condition Tax Minimum Amount
    Specify 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.

    If you select the Enable Generate Inclusive check box on the Record View tab of the tax group, this field is disabled.

    Tax Exempt Reason
    Specify the tax exempt reason.
    Adjustment
    Select the check box to indicate that the transaction code is used to adjust or reverse the charges that were earlier posted to an account. The field is enabled only if you specify a value in the Condition Base field.

    The Adjustment Code field is enabled only if you select the check box.

    Adjustment Code
    Specify the adjustment code.

    The field is enabled only if you select the Adjustment check box.

  7. Click Save.