You are allowed three characters for the Tax Code.

The Description may have up to 30 characters.

The Tax Code Percentage Rate is entered in decimal form (Example:  6½% should be entered as 6.5). Tax Codes may be brought out to four digits after the decimal.

Some states have different Rounding Values for calculating tax. The system will calculate taxes based on the Rounding Value you select. This is a mandatory entry.

The following are the acceptable Rounding Values:

0.0099 will always round up.

0.0050 will average round.

0.0000 will always round down.

Some states require an extra sales tax on those items that are listed as Taxable. This is entered in decimal format (i.e. .5 for 1/2%). This will be added to the regular Tax Percentage on Taxable inventory items only. Those items marked "Taxable - Yes" in "Inventory Entry" in INVENTORY (5.1.1 field 5). Tax Codes may be brought out to four digits after the decimal.

Some Municipalities require you to change your tax rate after a certain dollar amount on an individual invoice. You will enter the dollar amount at which to change the tax percentage.

The Tax Change Percentage is the percent to subtract from the regular tax if the taxable amount goes over the Tax Change Amount on a single invoice. If you have entered a dollar change amount, you will need to enter the percentage to subtract from the regular tax percent. Tax Codes may be brought out to four digits after the decimal.

Example of Tax Change Amount with Tax Change Percentage:  The regular tax rate for your county is 6.5%. After a customer has bought $5,000 worth of taxable merchandise, on a single invoice, the tax rate drops to 6%. You would enter $5,000 in the Tax Change Amount and .5 in the Tax Change Percentage. The system will automatically calculate the correct tax at "POS Order Entry" in POINT OF SALE (1.1).

The Mandatory Tax Code field can be used for the GST (Goods & Services Tax) in Canada.  If entered, this tax percentage will be calculated on ALL items. Since this tax is mandatory, removing the tax with the <T> option in “Unposted Invoice Maintenance” (6.3.1) will not be possible. This will only remove the regular tax calculated on the Invoice.

If the Mandatory Tax is incorrect, you will need to Void or Credit the Invoice and then reassign the Customer to another Tax Code that does not have a Mandatory Tax and then recreate the Invoice.

A separate Mandatory Sales Tax GL Account must be setup in “AR Setup” in SYSTEM MANAGEMENT (10.2.2.1 field 22).