Sales Tax Code Window
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Clicking on the Add or Edit buttons on the Sales Tax Code Glossary Window or Sales Tax Code Search Window will open the Sales Tax Code Window. A Sales Tax Code tells Design Manager how to charge sales tax for Items in a Project. You will need to enter a Sales Tax Code for each authority for which you collect sales tax. These Tax Codes are usually state abbreviations, but may be counties or cities. If you are not required to collect sales tax, you will still need to set up at least one Tax Code that has a rate of 0%. You will not be able to enter a Project without a Sales Tax Code assigned.
To add an entry, type the required information into the appropriate fields described below . To edit an entry, type in the new information. To change a Tax Code, you must delete the entire entry and add a new entry. See the Delete function on the Sales Tax Code Glossary Window.
Tax Code: This Code is used to designate a particular sales tax region. Up to five alphanumeric characters may be used.
Description / Name: Use this optional field to input the state, county, or parish name or a description of the Sales Tax Code such as "Nontaxable Sales". Up to 30 characters may be used.
State Abbreviation: The State Abbreviation is required as it used to sort the Sales Tax Codes where you have multiple counties or parishes within a given state. You must enter a State Abbreviation.
Sales Tax Withholding Account: You must enter a General Ledger Account Number into which you will record the amount of sales tax collected. This Account is usually named "Sales Tax Liability" or "Sales Tax Collected". The Sales Tax Withholding Account is usually a Liability Account as sales tax represents money that you owe to the tax authority. When you pay for the tax, you would use this Account when entering the Operating Expense. To search for an Account Number, click on the Search button in the lower left corner of this window to display the Account Search Window.
Taxable Defaults: At the bottom of the window you will find a row of Taxable options, one for each Component Type recognized in Design Manager. For each of these Types, you can select whether or not it is taxable for the sales tax authority. Once the Taxable defaults are correctly configured, they will be defaulted to any Project using the Sales Tax Code and any Components subsequently specified within the Project. This prevents you from having to remember to correctly set the proper taxable status for each Component!
Inactive: If a Sales Tax Code has previously been used on a Project, but you no longer want to use the Sales Tax Code, you can mark it Inactive. If this option is selected, the Sales Tax Code will not appear in the Sales Tax Code Glossary nor on certain reports. To reopen an Inactive Sales Tax Code, click the Show Inactive option on the Sales Tax Code Glossary Window, edit the Sales Tax Code, and unselect the Inactive option.
Description for Document Printout: By default, Design Manager will print "Sales Tax" on the Invoice documents indicating the amount of the Invoice attributed to Sales Tax. However, you can change the Description for Invoice Printout to any phrase desired which will cause all Documents for Projects using the Sales Tax Code to display the new text. ***NOTE: The With Deposit Document styles will not change this title in the column that lists the itemized sales tax. The Title will ONLY change in the Subtotal of the Documents.
Each Sales Tax Code must contain at least one Tax Calculation. Tax Calculations can be added, edited, or deleted from this window by selecting the appropriate button. For a detailed description on Tax Calculations, see the Sales Tax Calculation Window.
Note: Some Projects may be tax-exempt (i.e. they are a charitable organization or out-of-state). In this case you can create a Sales Tax Code “NOTAX” with a name “Non-taxable”. You will uncheck all the Taxable defaults and set all the tax percentages on the Sales Tax Calculation Window equal to zero in this case.