Tax Codes
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About Tax Codes

Tax Codes are used to define an individual tax jurisdiction, and the tax rates that apply in that area. A tax code can consist of up to eight tax types, each of which are named in the Setup Accounting screen, in the Tax Definitions section. Customers and invoices can then have tax codes assigned to them in order to determine the proper tax rate to apply. The taxes then are reflected in invoice transactions and are easily paid to the appropriate authorities using the Pay Taxes wizard.

In this Topic
   Field by Field Help - Tax Code screen
   Q & A - Tax Codes

Related Topics
   2.7   How to Use Lists
   3.1   Setup Accounting
   5.1   Invoices and Refunds
   11.6   Pay Taxes
   16.6   Zip Codes

Field by Field Help - Tax Code screen


Tax Code
Enter an alphanumeric value to identify the tax code. This value must be unique for each tax code entered.

Effective Date
Enter or select the date that this tax rate becomes effective. Tax code rates may be changed over time. This value is used to determine whether the old or new rate should be used.

Enter a description for the tax rate. This value is used to identify the tax structure on lists and reports.

Tax Region
Enter a description of the region that this tax code covers. This value is used to provide region selection for e-commerce taxation.

Tax code is exempt from all taxes
When checked, charges no taxes on any invoices where this tax code is present.

Tax calculated on another tax exists for this tax code entity
When checked, allows for one tax amount to be calculated and added to the sub-total. Then another tax amount is calculated based on the new subtotal.

Computes taxes on lowest selling price when item is undersold
When checked, the program will calculate the tax amount using the lowest selling price on the supertrack inventory record instead of the sale price if the sale price is lower.

bulbThe above field may be used to charge full taxes for an item, even if the item was sold at a significant discount.  

Tax Freight Charges
When checked, the program will include freight charges in the taxation calculation.

Inactive tax code
When checked, this tax code will no longer be available when adding new customers and transactions.

Tax Definitions

Tax Type X -...
Select whether a percentage tax, flat rate dollar amount of tax, tax based on net weight, or value added tax (VAT) is charged on each item sold. Then place the percentage or dollar amount in the field following. A tax type will be present for each tax type defined in the Tax Definitions category of Setup... Accounting.

Authority Name
Enter an alphanumeric value to represent the taxing authority that collects this tax type. This value is used to group common tax types for reporting purposes.


Tax Type X...Tax Liability GL Account
Enter or select the general ledger account you have set up for the tax liability created when making a sale transaction. One tax liability GL account will be available for each tax type. This account will be credited for taxes collected. This value overrides the account provided in the Accounts Receivable category of Setup ... Accounting, if any.

Tax on Tax

This tab is only available if the check box labeled "Tax calculated on another tax exists for this tax code entity" has been checked.

Tax type requiring tax-on-tax calculation
Select the tax type that needs another tax to be calculated first. More than one type may be selected in total, but only one at a time may be modified.

Include (Tax Type X) in tax calculation
When checked, the program will calculate this tax first and add it to the sub-total. The tax selected above will be subject to the new sub-total, including tax.

Q & A - Tax Codes

Q01.   How do I implement a change in tax rates?
A01.   Enter a new tax code record, using the same code, but with a new effective date and new rates. On the effective date, the new rates will automatically take effect.

Q02.   What is net weight tax used for?
A02.   Most taxing authorities will tax liquor, wine, and spirits based on their weight, rather than on their price. The net weight tax option allows a company to add tax to an invoice based upon the weight or volume of an item, rather than it's price. This tax is found by multiplying the net weight found on the supertrack inventory item's detail tab by the quantity by the dollar amount found on the tax code record.

Q03.   How does the VAT get calculated in ManageMore?
A03.   The VAT calculation will multiply the percentage amount entered in the tax code by the difference between the item's cost and item's price on the invoice (gross profit).

Q04.   I don't see my question here. Where else can I get information?
A04.   Visit our website's Technical Support section.

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