Tax Setup

Tax Setup

Navigate to A/R Module, Setup -> System Tables Setup -> Tax Setup

Select New and at a minimum, enter tax ID, Tax Description, tax rate and G/L code for the tax.

Override Description for Invoicing - if the Tax Description field isn't desirable to display on the client's invoice, you can add an override description instead

Tax Rate - Enter the rate here. Tax rate supports up to 5 decimal places.

Inactive - If a tax rate is to no longer be used it can be marked as inactive.

Reverse out tax - In some countries it may be required to show the tax amount on a Customer Invoice, but not actually charge it. Selecting this option will show the tax amount in order entry and in the billing prepare step, but it will not actually post the transaction for the tax. On the Invoice use #REVERSE_TAX_AMOUNT_IN# and #REVERSE_TAX_AMOUNT_OUT# for positive and negative tax amounts. In the single valued area #TAX_AMOUNT# will be 0.00 since no tax was actually posted. In the line item details #TAX_AMOUNT# will display an amount. Here is an example of the tags and how they display:

Tax Cap - this is a maximum taxble amount per invoice. One of our customers has a state tax which recognizes a maximum taxable amount of $500 per invoice. Since this is a per invoice cap and not necessarily a per order or campaign tax limit, this will only be seen when invoicing. The campaign will reflect the total estimated tax per the tax rate, and if any given invoice will exceed the cap, then an adjustment will be made to that invoice to reduce the tax to the amount of the cap. As an example, suppose the invoice was $1,000 and the tax rate was 10%. Without the cap, the tax would be $100. With a tax cap of $500, only the first $500 of the invoice would be taxable, so therefore the tax on the $1,000 invoice would only be $50.

Vendor Payment Withholding Information - This is only relevant to our clients who use the A/P module. If this tax is a withholding tax, if applicable, enter an Exempt amount and/or Exemption reason. If anything is entered in here, then on the Vendor Maintenance screen, in the Tax section, you will see the Withholding limit displayed here (and also the tax %)

Other Taxes to apply first - if there are more than one tax to be paid, this will indicate which other tax should come first. Checking the cumulative checkbox will include the other tax in this tax's calculation. Without it checked, each tax will be calculated separately and then added together for the total tax amount. On the invoice each tax will be displayed separately: In some locations, goods require more than one sales tax. In Canada, many provinces have both a Provincial tax (PST) and Governmental Tax (GST). However, in this system, you can only apply one tax code to a customer / vendor / transaction. The "First Tax to Apply" field lets you handle two taxes by allowing you to apply a prior tax before applying this tax.

For example, on a tax code of PST you could specify GST in this field. The system will then calculate the GST tax before calculating the PST tax.

G/L Settings for Taxes:

The G/L Code at the top of this section refers to the default G/L code. It is a required field to save the tax. All the other G/L Codes below are optional, should you wish to override the default for certain Companies, Product Groups or Products.

VAT Reporting / EEC State Tax - This option controls whether the tax code is considered an EEC State Tax when running the VAT Report from the G/L module

Advertising G/L Overrides - within the Advertising Module, the tax g/l used can be overwritten for products and / or product groups.

When booking PERFORMANCE campaigns, invoicing is tied to specific products and their issues or run dates. Therefore, in performance campaigns, the G/L can be overwritten for specific products, or for the product group selected on the campaign header.

When booking FLEXIBLE campaigns, invoicing is NOT tied to specific products or even to the run dates, but rather to a payment schedule, so with flexible campaigns only the Product Group overrides are relevant. For example, if you have a campaign with Product A for $500 and Product B for $200. Invoicing process is run and suppose the first bill is $100 - the system doesn't know if that $100 is really for A or B, or if it is for both - therefore the system looks to the Product Group to determine which Tax G/L to use.

Print Zero tax on invoices - If set to yes, even if there is no tax due, the tax will be displayed on the invoice. If set to no, the tax line will only be displayed if there is tax due.

Multiple Company G/L Overrides - these overrides are relevant not only to Advertising, but also to A/R Invoices. Same comment applies here as above - for Flexible Campaigns, it will look at the product group on the campaign and not the individual products. If there is a Multiple Company G/L override and a Product Group override, it will apply the Product Group Override.