Tax Code Maintenance

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Use this form to set up tax codes and rates that are assigned and applied throughout Greentree.

When you first access this form, it displays using the country of the company you are logged into.

New Zealand

Code

Enter a code to represent the tax rate, up to 40 characters long.

Description

Enter a description to represent the tax code or rate, up to 40 characters long.

Country

The default value is the country of the country you are currently logged into. You can select a different country if the tax code you are setting up is for a different country. The form may change appearance to accommodate the setup requirements of the selected country.

Active

Select this option to indicate that users can apply the tax code during transaction entry.

Reduce tax for prompt payment discount

Select this option to deduct the proportion of tax included in the prompt payment discount from the tax originally charged. A credit note generates for this adjustment.

Usage

Select this option to indicate that the tax code is used for sales related to customer transactions, purchases relating to supplier transactions, or both. You can assign the tax code to customers, suppliers, transactions, and the like. using the option selected here.

This option defaults to Both.

Control acct

This account updates with transaction tax values for transactions using this tax code. If the account is left blank, the input and output tax accounts specified in GL Module Control are used.

Allow tax rate/amount change

If you select this option, you can change the default tax rate or tax value during transaction entry. If you don't select this option, those values are read-only during transaction entry.

Allow rate change to zero

This option is enabled if the Allow tax rate/amount change option is selected. If it is selected, you can change the tax rate or value to zero during transaction entry.

Rate table

Enter the tax percentage rate, and the effective date, which is the date from which the rate applies. The first line always default to prior postings, which is the default (indicating the rate applies to all dates) unless another lines is entered with a valid effective date.

Australia

WET Tax

Select this option if the company is subject to WET tax, which means that tax is calculated at multiple levels. Where WET tax applies, you must enter a line for each tax level and location pertaining to the multi-level taxation structure. These must have been previously set up in Tax Level Maintenance and Tax Location Maintenance.

The rate is determined by the tax location. Reduce tax for prompt payment discount must also be set in Tax Location Maintenance.

Tax on previous level

Select this option to indicate that tax must be applied at the previous level in the table. The taxable amount to be used in the calculation of the final tax value at this level must also include the tax value calculated at the previous level.

For a WET tax code, the usage option is set to Sales and there is no option to enable a rate change to zero.

Summary

Select the tax summary type of the code from this list.

Countries using North American Sales Tax

If the tax code is to be used within a company subject to North American sales tax, the North American tax indicator must be selected. This will appear on the form using the country that is selected for the tax code. If North American sales tax is in use, an additional Report USE tax option is available to select. Select this option to enable the entry of location level USE tax rates in Tax Location Maintenance.

Prompt Payment Discount example

Line Amount	2,500.00
Tax	15%
Prompt payment discount	5%

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