If your business makes sales, you're probably very familiar with the concept of including tax on the transactions you conduct with your customers, and you know how important it is to track these amounts carefully.
To help you keep on top of taxes, MYOB BusinessBasics uses tax codes. Each tax code represents a particular tax rate, which is used to calculate tax on your transactions. You'll set up taxes using the Tax Code List window which can be found by choosing Tax Codes from the Lists menu.
In BusinessBasics, you can choose from two tax types:
This tax type is used for taxes that are made up of two or more tax codes or sub-taxes. You can use this code, for example, if the 8% tax rate you record on sales is the combined total of a 5% state sales tax rate and a 3% city sales tax rate.
This tax type is associated with the tax recorded on sales of goods and services.
Before you can accurately track tax amounts on sales, you must set up tax codes that represent the tax rates your company uses. You can create as many tax codes as you like. If a tax rate changes or you wish to link a tax code to a different account, you can change the tax code information. A tax code can be removed only if it's not in use on a sale transaction.
Step by step
To create tax codes
To change tax codes
To remove tax codes