To create tax codes

Setup > Personalizing your company file > Using tax codes >>

The Tax Code List window should be displayed. (To find the Tax Code List window)

  1. Click the New button.


  2. In the Tax Code Information window, enter a descriptive code for the new tax code using up to three characters, along with a description. This code will appear in transaction entry windows, on sales and purchases and elsewhere throughout the system. We recommend that you make the code as descriptive as possible so that it'll be easy to recognize when you're entering transactions.


  3. From the Tax Type list, select the option that describes the tax code you're creating.


After you've made your selection, a number of additional fields will appear. The fields that appear will depend upon the tax type you've chosen.

  1. The next step depends on the tax type you've chosen:


Consolidated tax type: A window appears, allowing you to specify the tax codes (sub-taxes) that will be included in this consolidated tax code. In the Code column, enter each of the codes you want to include, or press the tab key to select from a list of the tax codes you've created.

Import Duty tax type: Enter the tax rate (the percentage of duty applied to goods using this tax code), as well as the account you wish to use to track accrued duty amounts; this generally is a liability account. If you've created a card for your import agent, you can enter the import agent, as well.

Sales Tax tax type: Enter the tax rate for this tax code. Also enter the account you wish to use for tracking the tax you collect from customers (usually a liability account) and the account you wish to use for tracking the tax you pay to vendors (usually an asset or liability account). If you've created a card for your state tax authority (or another tax authority, if applicable), you can enter that card, as well.

  1. Click OK.


The next time you enter a transaction in the Sales window or Purchases window, the tax codes you have set up will be available for you to assign to the transaction.

Note:  Tax codes can be entered automatically in transaction entry windows