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Tax Code Information window - Sales Tax Type view

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Tax Code

Use up to three characters to enter a code for the tax record you're creating.

Each time you enter a transaction in the Sales window, you'll be able use this tax code to assign this tax to the transaction you're creating.

Description

Enter a description for the tax code you've entered. We recommend that your description be short and easy to remember.

Tax Type

Select the tax type that applies to the tax code you're creating. In MYOB BusinessBasics, there are two tax types:

Sales Tax - This tax type covers most of the taxes you'll collect or pay. This tax type should be used for state, county and city taxes on retail sales.

Consolidated - This tax type is used for tax codes that are made up of two or more other tax codes. For example, if you're required to charge both a state sales tax and a local (city or county) sales tax on the sales you make, you can use a consolidated tax code that combines tax codes for both these tax rates.

Rate

Enter the percentage of tax that is associated with the tax code you're creating.

Linked Account for Tax Collected

Enter or select the account you want to use to track the tax calculated for this tax code on invoices recorded in the Sales window. This account typically is a liability account. Click the zoom arrow next to the field name to open the Edit Accounts window and make changes to the account.

New button

Click this button to open a new Tax Code Information window and create a new tax code.

OK button

Click this button to accept the entries you've made in this window.