Defining Tax Tables

If you defined any tax codes with a type of Tax Table Code, you will need to set up a tax table. The tax table allows you to calculate a tax on a tax. This procedure describes how to define tax tables. If you do not have any tax codes set up as tax table codes, you can skip this procedure.

To define a tax table

  1. Access Tax Tables (TX01.2).
  2. Add the tax codes you need. You can define up to eight codes for each transaction. Use the following guidelines to enter field values:
    Effective Date

    Assign an effective date to the tax table. The Tax application uses the most recent effective date on or before the transaction date to determine which tax table to apply to a transaction.

    Description

    Type user defined description for the tax table.

    Tax Code

    A tax table lets you apply multiple tax codes to a transaction. Select all of the tax codes you want to include. For example, you can include both a city and state tax.

    Taxable Effect

    Select what the effect will be on taxable amounts for the next code in the table. You can select Add to Taxable, Subtract from Taxable, or No Effect. For example, if the original taxable amount was $100 and the first tax code in the table was 10%, the next tax code would be applied to an amount of

    • $110, if you selected Add to Taxable

    • $90, if you selected Subtract from Taxable

    • $100, if you selected No Effect