Sales Tax Setup
Overview of AR06
A/R Tax Setup program is used to establish criteria for federal, state, county, and city sales taxes applicable to customer accounts-receivable transactions. A/R Tax Setup is used by Order Entry applications.
- From the DDI Connect main menu, double-click Accounts Receivable
- Double-click Setup
- Double-click Sales Tax Setup. You will see this screen:
You can leave the Type set to "All", or click the drop down arrow to select the type of tax you are adding:
To add a new sales tax, click the Add button on the toolbar. The Tax Code Properties box will appear:
The following fields are available on this screen:
| Field | Description |
|---|---|
| Tax code | This is an alphanumeric identifier (up to four characters) representing a single tax rate or taxing authority. For state taxes, the tax code is usually the same as the state code. For county taxes, it is usually the state code followed by a county number assigned by the state (“IN01”, for example} |
| Expires on | If applicable, enter the date that this particular code expires. If this date is blank, this tax code will always remain in effect. Otherwise it will no longer be applied after the expiration date. Type the date in mm/dd/yy format or click the calendar icon to select the date |
| Description | Enter a brief description of the tax code |
| Type | Click the drop down arrow to select the type of code you are adding |
| State | Type the state abbreviation or click the list icon to select from a list of states in the system |
| County code | Type the county code or click the list icon to select from a list of active county codes in the system |
| City | Type the city |
| Transaction | Enter the tax transaction code or click the list icon to select from a list of active tax transaction codes in the system |
| Taxable amount/thru | If the tax only applies for a certain amount, enter the minimum and/or maximum amount that the tax applies to |
| Shipping charges are taxable | Check to indicate that shipping charges should be included in the taxable amount |
| Fees are taxable | Check to indicate that billing fees should be included in the taxable amount |
| Calculate tax only on the amount above the minimum | If the tax should only be calculated when an amount is above the minimum amount entered above, select this option |
Also on the Tax Code Properties screen, you have the ability to indicate the tax rate and effective date of the rate. For example, if the tax rate is going to increase .5% as of 01/01/2013, you can add it to the tax code properties. Click the add button on the toolbar:
This adds a new line to the columns:
To set the effective date, double-click that field. It will activate for editing:
Enter the new date in mm/dd/yyyy format. Next, double-click the tax rate field and enter the tax rate.
When you have finished entering the information, click OK to save your changes.
