Setup

To create tax codes

The Tax Code List window should be displayed.

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.

We recommend that you make the code as descriptive as possible so that it'll be easy to recognize when you're entering transactions. This code will appear in transaction entry windows, on sales and elsewhere throughout the system.

3. From the Tax Type list, select the tax type that describes the tax code you're creating. (Using tax codes)



4. After you've made your tax type selection, a number of additional fields will appear; the fields that appear will depend upon the tax type you've chosen. Make selections as needed.

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.

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).

5. Click OK.

The next time you enter a transaction in the Sales 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

Related topic

• Using tax codes
• Entering tax codes on transactions

Step by step

• To change tax codes
• To delete tax codes
• To change tax amounts for a single transaction