IM-G  Enter Tax-In Codes

Purpose of Program

Commonly referred to as "Tax-In" this program enables you to back out the taxes that are embedded in the selling or purchase price, using the rate scheme specified in this program.  The calculation reduces the selling or purchase price by the tax in the price and posts the tax amounts to the general ledger accounts specified on this screen.

The Tax-In codes entered in this program are assigned to customers in AR-A  Enter Customers and to vendors in AP-A  Enter Vendors.  Inventory items need to specified whether they are subject to Tax-In via IN-B  Enter Inventory.

The combination of an item with Tax-In set to Y and a vendor or customer with a Tax-In Codes will cause the calculation to back out the taxes and post to the general ledger account specified.

Field Explanations

Tax-In Code

This is the code that identifies the Tax-In code.

Description

The Tax-In code's description.

Tax Identification Number

This is optional and usually would be for a governmental identification number.  If left blank, you will not be able to print this number on any sales or purchase order documents.

Vendor Code

This is a valid vendor code the system will use to transfer the accumulated tax amount when processed via AR-L  Transfer Sales Taxes.  

Cd

Used for Tax-In only, this represents the numeric code identifying a set of tax ranges and percentages.  Each code represents an exclusive set of rules and can overlap previous ranges.  Only one code can be chosen as the method of taxation when establishing the Tax-In code in AR-A  Enter Customers or AP-A  Enter Vendors.

From-To

The monetary range for the item price in which the sales or purchase line item amount must fall into to trigger the corresponding percentage to the corresponding code.

Percent %

The tax percentage used in calculating the amount of tax corresponding to the specific code.  The tax is based on the sales/purchase order line amount, if that item's Tax-In field is set to Y in IN-B  Enter Inventory.

GL-Account

The General Ledger account to which the taxes will be posted.