The Taxcode Manager program is used to create and maintain the taxcode records that are used by the Sales Tax Processing System. The Sales Tax Processing System is used to calculate and record the sales tax information for the sales that you make to your customers.
Taxcode records store the sales tax rate to be used for a specific geographic region when a taxable sale is made into that geographic region. The Taxcode information entered for each sales order line and invoice line is used along with the Taxtype information in the line to determine the amount of sales tax (if any ) to be charged for the sale and to produce the reports used to fill out your sales tax returns.
Taxcode and Taxtype records, and the Sales Tax Processing System are described in detail in the documentation for the Sales Tax Processing System (STX).
The Taxcode Manager contains several different fields that are used by the system during sales tax processing and these fields are briefly described below.
Code: The unique ID for the Taxcode. The code field is an 8 character ASCII field that identifies the Taxcode. You may search for an existing taxcode record by placing the cursor in the Code field and using the Find keys (page up, page down) to scroll through the taxcode records that have been entered on your system.
Active: The Active Checkbox is used to indicate if the selected Taxcode record is Active (checked) or Inactive (not checked). The StreamV system (windows applications) will not allow an inactive taxcode to be used for a new record (order, customer), but the system will allow existing records with an inactive taxcode to be processed or completed. The StreamII applications do not check or use the status field in the Taxcode record.
Type: The Type field in the Taxcode record is not currently used by the system.
Authority: The Authority (state, city, local taxing district) that the sales tax rate applies for. In some cases, this may be a state (ie Florida 6% statewide rate, in some cases, this may be a country wide rate – ie GST 7.5%, and in some cases, this may be a county or city – ie Alameda County California 7.75%). The Tax Authority should normally identify the location in which the taxcode applies.
Autopost: The General Ledger Autopost Number that should be used for the Taxcode. As Accounts receivable invoices for sales to customers are posted to the General Ledger, the system checks the taxcode being used in each invoice line to determine where the amount of sales tax collected for the invoice should be posted. The system uses the autopost number that is stored in each taxcode record to determine the autopost of the general ledger account and subaccount that should be used for the amount of the tax collected for the invoice line. The Valid autopost range that can be used for Taxcode records is 3700-3799. One or more taxcodes can be assigned to a specific autopost number to allow the tax amounts to be combined (by state or in some other manner) or to be posted individually. If the Taxcode being posted does not contain a valid autopost number, the system will use the autopost 370 as a default.
Rate: The tax rate to be used when sales are made using the selected Taxcode. The Tax rate that is specified should be the Total rate that applies to the sale – only one taxcode is used for each sales order or invoice line and that taxcode record must store the total rate that applies to the sale.
Tax Sales: The Tax Sales (taxable sales) field is an accumulator field that is not currently used or updated by the system.
Tax Returns:The Tax Returns (taxable returns) field is an accumulator field that is not currently used or updated by the system.
Tax Collected: The Tax Collected field is an accumulator field that is not currently used or updated by the system.
Tax Shipping: The Tax Shipping Flag indicates whether or not the rate in the Taxcode record should also be applied to the shipping charges for the invoices processed using the Taxcode. If the tax shipping flag is set to Y, the system will apply the rate from the taxcode to both the items and the shipping amount on each invoice processed with the taxcode. If the tax shipping flag is set to N, the system will apply the rate from the taxcode to only the items (the subtotal) on each invoice processed using the taxcode and it will not apply the rate to any shipping amount specified on the invoice. You may set the Tax Shipping field to the appropriate value using the prompt button that is located to the right of the field.