Creating Sales Tax Codes

AccountsReceivableGuide > Accounts Receivable > Setting Up Accounts Receivable > Accounts Receivable Codes > Setting Up Sales Tax Codes > Creating Sales Tax Codes

Use Tax Codes to automatically calculate sales tax when you enter transactions. You can define Tax Codes to accommodate complex sales tax requirements, and set them up to post either to a general ledger liability account or directly to the vendor to whom the sales tax will be paid. The Tax Code you apply to your customers overrides the tax code in Sales Module Preferences. You can create and use Tax Codes in Accounts Receivable and Sales.

To create tax codes:

1 In Accounts Receivable, select Options > Define Sales Tax Codes from the left navigation pane.

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2 In the Sales Tax Code field, enter a Sales Tax Code of up to six characters. This code will appear in Lookups and on reports.

3 In the Description field, enter a description, usually the name of the sales tax.

This description will help you identify the Sales Tax Code and will also appear in Lookups and on some reports.

4 In the detail grid, enter detail lines for each part of this Sales Tax Code.

When you enter transactions, the system calculates each part of the Sales Tax Code. When you post, each part of the Sales Tax Code posts to the GL Liability account or to the AP Vendor you specified.

5 Save the Code.