Sales Taxes: To Configure a Sales Tax for Use in AP

By performing this implementation activity, you will learn how to configure a sales tax that will be used in AP documents and purchase orders.

Story

The Muffins & Cakes company buys goods from its suppliers and pays the sales tax on these purchases (input tax). The rate of the sales tax is 8.31%. You need to configure a sales tax of the Input type in the system, which will be applied to AP documents.

Process Overview

In this activity, on the Taxes (TX205000) form, you will open a sales tax; on the Tax Schedule tab, you will add a line for the Input type of reporting group.

Important: Before configuring a sales tax in the production environment, you should know exactly which calculation method should be applied in the Calculation Rule box (Tax Settings tab) of the Taxes (TX205000).

System Preparation

Before you begin to work with sales taxes, do the following:

  1. As a prerequisite activity, configure the DENTAX tax as described in Sales Taxes: To Create a Sales Tax for Use in AR.
  2. Launch the MYOB Advanced website, and sign in to a company with the U100 dataset preloaded.
  3. To sign in as an administrator, use the following credentials:
    • Username: gibbs
    • Password: 123

Step: Updating the Tax Schedule for the Sales Tax

To add a line to the tax schedule of the sales tax, proceed as follows:

  1. Open the Taxes (TX205000) form.
  2. In the Tax ID box, select DENTAX.
  3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
    • Start Date: 1/1/1900 (inserted by default)
    • Tax Rate: 8.31
    • Reporting Group: Input
  4. On the form toolbar, click Save to save your changes.

    The created tax will be applied to all taxable items purchased from vendors assigned to the DENVER tax zone.