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 open 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.

Description

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

Country

The default value is the country of the country you are logged into. You can select a different country if the tax code you are setting up is for a different country.

Active

Select this option to indicate that users can apply the tax code when entering a transaction.

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 on the General Ledger Module Control form are used.

Allow tax rate/amount change

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

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 when you enter a transaction.

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 about the multi-level taxation structure. These must have been set up on the Tax Level Maintenance and Tax Location Maintenance forms.

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

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 use in the calculation of the final tax value at this level must also include the tax value calculated at the previous level.

Note: 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 U.S. Sales Tax

If the tax code is to use within a company subject to U.S. sales tax, the U.S. tax option must be selected. This field displays on the form using the country that is selected for the tax code. If U.S. sales tax is in use, you can select the Report USE tax option to enable the entry of location level USE tax rates on the Tax Location Maintenance form.

Note: For this type of tax code, the usage option is set to Sales and there is no option to enable a rate change to zero.

If you have multiple U.S. tax codes, you can use the Import Tax Codes process to import codes into this form via a data file.

Prompt Payment Discount example

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

• Country Maintenance
• General Ledger Module Control
• Tax Level Maintenance
• Tax Location Maintenance
• Import Tax Codes

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