Taxes

Use Tax Groups to assign taxation charges to particular charge codes and services.

Required?: If you have taxable services, you’ll need to define each distinct tax group.
Additional Information: The tax group will be identified on the facility record. All taxes that apply for a facility should be setup with the same tax group name. Each record must have a unique combination of Tax Group, Level, and Effective Date.
Taxes are identified by a header record and a group of detail records. The header record identifies the tax level (such as state or city tax) and the tax rate/unit of measure used to calculate taxes. The detail records associate individual charge codes with the tax. The system will then automatically calculate tax charges when those charge codes are invoiced.

Header Fields

Tax Group/ Description: The name and description that identify this tax group.
Level: The tax level, such as federal, state, or city. The associated level record identifies the sequence in which cascading taxes should be applied.
Effective Date: The date on which this tax goes into effect. You can use this value to phase in new taxes on a future date.
Tax Charge Code: The charge code to use for the actual charged tax amount. This will be displayed on the invoice.
Tax Rate: The tax rate (percentage). The tax amount is computed based on the total amount of charges associated with the charge codes listed in the detail area of the screen.
Tax UOM: Provided for reference purposes only. This value displays in the UOM field on the invoice but is not used to calculate tax amounts.
Tax Code: Not used.
Cascade: Used in conjunction with the level field to allow you to include a lower level tax when computing a higher level tax. The Level field popup window will display the levels in ascending order of priority. Those taxes that appear first in the list can be included in the total amount that is taxed in a cascading fashion by levels that appear later in the list.

In the detail area, you identify each charge code that should be taxed. Taxes will only be calculated against charges associated with these codes.