Define a Tax Schedule Home | FAQs & Troubleshooting

 

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Set Up Sales Tax Information
	Define Tax Classes
	Define Tax Codes
	Define Tax Schedules
	Assign Sales Tax Schedules

 

 Overview

After defining sales tax codes, use Sales Tax Schedule Maintenance to group tax codes that make up a total sales tax rate for assignment to customers and vendors, and to establish whether tax detail will print on sales orders and invoices. For example, if a specific county requires that you calculate both state and county tax, create a sales tax schedule that groups the state and county tax together.

For more information, see Sales Tax FAQs.

 

To define a sales tax schedule

1. Select Library Master Setup menu > Sales Tax Schedule Maintenance.

2. Enter a schedule in the Tax Schedule field and type a description in the Description field. For more information, see Sales Tax Schedule Maintenance - Fields.

3. In the Tax Code field, enter a tax code to add to this tax schedule and click OK. Repeat this step for each tax code you want to add to the tax schedule.

   The sequence in which the tax codes are entered is very important because of "tax on tax" calculations and the establishment of the primary tax code. If a tax code is taxable by another tax code, it must be calculated first. For example, if tax code CA is taxable by tax code OR, CA would have to be calculated first to get an accurate calculation for the OR tax code. The first tax code entered will become the primary tax code. The primary tax code is used during the calculation of taxable and nontaxable amounts on each invoice and printing/updating of sales tax history.

4. Click Accept.

Sales tax schedules are defined.