To create tax codes

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

4. 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 view a selection list of the tax codes you've created.

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). If you've created a card for your state tax authority (or another tax authority, if applicable), you can enter that card, as well.

5. Click OK.

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

Note: Tax codes can be entered automatically in transaction entry windows The tax codes you set up can be assigned to customers to make your data entry faster and easier when you create sales in the future. Tax codes can be assigned to customers using the Selling Details tab in the Card Information window. A tax code for freight can be assigned using the Selling Details tab in the Card Information window. As with other automatic entries, you can choose other tax codes if the tax codes automatically entered aren't the correct ones.