You use this program to capture and maintain details of the tax codes required by the USA AVP sales tax or USA Tax by advanced geocodes systems.
| Field | Description |
|---|---|
| Tax Effective Rates | Loads the Extended Tax History Maintenance program to maintain the historical rates for the tax code. |
| Split code | Builds the Tax geo code field from the entries made at the State, County (or Zip code for the USA AVP sales tax system) and City fields. |
| State | Indicate the state code that will form part of the full tax geo code. |
| County |
If your Tax system is set to USA tax by advanced geocodes (Company Tax Options Setup) then this indicates the county code that will form part of the full tax geo code. |
| City | Indicate the city code that will form part of the full tax geo code. |
| Zip code |
If your Tax system is set to USA AVP sales tax system (Company Tax Options Setup) then this indicates the zip code that forms part of the full tax geo code. |
| Tax geo code | Indicate the nine-character tax geo code
manually. This only applies when the Split code option is not enabled. |
| Field | Description |
|---|---|
| Tax geo code | Indicates the extended tax code you are currently maintaining. |
| State | Indicates the state code portion of the tax code. |
| Zip code |
Indicates the zip code portion of tax geo code (if you are using the USA AVP sales tax system). |
| County | Indicates the county code portion of the tax code (if you are using the USA Tax by advanced geocodes system). |
| City | Indicates the city code portion of the tax code. |
| Description | Enter a description for the tax code. |
| Effective date |
Specify the date from which values in the Current Sales Tax Rates fields are effective. This date is used to establish which rate to use when processing a credit note or debit note against an existing sales invoice. If the date of the invoice being credited or debited is earlier than the date specified here, then the entry made at the Previous sales tax fields is used instead. |
| Freight taxable | Enable this to charge tax on freight charges levied during invoicing. |
| Sales tax ledger code | If Sales tax integration to general ledger is at Tax code level (Company Tax Options Setup) then you can indicate the liability control account to which you want to post sales tax amounts entered in the Sales Order module. |
| Sales tax ledger description | This indicates the description of the Sales tax ledger code you entered. |
| Tax limits |
Define a limit from which a second tax rate or value must apply to the unit selling price of an item (in accordance with the ruling in certain USA states). This limit can be defined for each of the three tax levels (i.e. state, county or city). The tax limit calculation is applied only if you select to calculate sales tax at line level (Company Tax Options Setup). |
| None | The basic tax rates defined against the tax code will be calculated and charged. No Item value limit is applied. |
| Percentage | Select this to define the tax percentage to use to calculate the additional tax to apply when the value in the Item value field is reached. |
| Value | Select this to define the tax amount to use when the Item value limit is reached. |
| Field | Description |
|---|---|
| Current sales tax rates |
Assign the current tax rates to the tax code. These rates are used to determine the taxable value of an invoice captured with this tax code. The percentages/values you enter in these fields become effective on the date entered in the Effective date field in the Extended Tax Code Details pane. Each time you change the current tax rate, an entry is automatically added to the table of effective tax rates, to build up a history of the tax rates previously used (see Extended Tax History Maintenance). |
| State | Enter the current state tax rate percentages and values for the tax code. See Tax Limit Calculations. |
| Tax rate | Enter the base tax percentage applicable to state taxes. |
| Item value | Enter the item value up to which the tax rate in the Tax rate field must be applied and after which the entry in the Value column must used or the percentage in the Percentage field must be added on. |
| Percentage |
Enter the percentage of state tax to use to calculate the additional tax to apply when the value in the Item value field is reached. |
| Value |
Enter the state tax value to apply when the amount in the Item value field is reached. |
| County | Enter the current county tax rate percentages and values for the tax code. See Tax Limit Calculations. |
| Tax rate | Enter the base tax percentage applicable to county taxes. |
| Item value | Enter the item value up to which the tax rate in the Tax rate field must be applied and after which the entry in the Value column must used or the percentage in the Percentage field must be added on. |
| Percentage |
Enter the percentage of county tax to use to calculate the additional tax to apply when the value in the Item value field is reached. |
| Value |
Enter the county tax value to apply when the amount in the Item value field is reached. |
| City | Enter the current city tax rates and values for the tax code. See Tax Limit Calculations. |
| Tax rate | Enter the base tax percentage applicable to city taxes. |
| Item value | Enter the item value up to which the tax rate in the Tax rate field must be applied and after which the entry in the Value column must used or the percentage in the Percentage field must be added on. |
| Percentage |
Enter the percentage of city tax to use to calculate the additional tax to apply when the value in the Item value field is reached. |
| Value |
Enter the city tax value to apply when the amount in the Item value field is reached. |
| Total | This displays the total of the tax percentages entered in the Tax rate column for Current Sales Tax Rates. |
| Previous sales tax rates |
Assign the previous tax rates to the tax code. These rates are used to determine the taxable value of an invoice captured with this tax code. The values/percentages you enter in these fields are effective only up to the date entered in the Effective date field in the Extended Tax Codes Details pane. The Previous sales tax rates are used instead of the Current sales tax rate whenever the date of an invoice being credited or debited is earlier than the date entered in the Effective date field. You typically only enter previous sales tax rates when one or more of the tax rates and/or limits change. |
| Total | This displays the total of the tax percentages entered in the Tax rate column for Previous Sales Tax Rates. |
Tax limit calculations are only performed by Sales Order entry programs if you enabled the Line level at the Sales tax calculation option (Company Tax Options Setup) and the limits are defined against the tax code.
Value
When an Item value limit is set then the Value defined is seen as the maximum tax amount that will be charged per item.
For example, assume that:
Tax rate = 5%
Item value = 3000.00
Value = 150.00
For each item with a value between 0.001 and 3000.00, the tax is calculated at 5% per item.
For each item above 3000.00, the tax is set at 150.00 per item.
Percentage
When an Item value limit is set then the Percentage is the tax rate used to calculate tax over and above the base tax amount.
For example, assume that:
Tax rate = 5%
Item value = 3000.00
Percentage = 2%
For each item with a value between 0.001 and 3000.00, the tax is calculated at 5% per item.
For each item above 3000.00, the tax is calculated as follows:
(Item value * Tax rate) + ((Total value - Item value) * Percentage)
Therefore, if the Total value of the line excluding tax is 3500, then the tax is:
(3000 * 0.05) + (500 * 0.02) = 150 + 10 = 160
Access to this program can be restricted per operator group (see Security Access).
Additional security can also be implemented in the following areas:
Functions/Activities can be restricted:
per operator (see Security Activities).
per operator role (see Role Activities and Fields Maintenance).
using Electronic Signatures (see eSignature Setup).
Fields can be restricted:
per operator (see Security Fields and Access).
per operator role (see Role Activities and Fields Maintenance and Role Access Control Maintenance).
Don't switch between using the USA tax by advanced geocodes and USA AVP sales tax system as the tax code key formats differs between the systems.
The key for the USA tax by advanced geocodes is 4 characters for the country code and 3 characters for the city code (e.g. AABBBB CCC).
The key for the USA AVP sales tax system is 5 characters for the zip code and 2 characters for the city code (e.g. AABBBBBCC).
When USA tax is in force, tax is always excluded from credit checking calculations.