Create or select from your list of Sales Tax Authorities.
Sales Tax data may also be imported: see Start Sales Tax Update (Avalara).
Create the city and county sales tax authorities that comprise a Sales Tax Group.
If a Tax Authority record is changed, each Sales Tax Group record associated with the changed Tax Authority will be updated by the system.
Tax Authority Id:
Uniquely identifies the Tax Authority. This field is required.
Tax Authority Name:
This optional field briefly describes the Tax Authority (e.g., Middleton County, Ohio) and provides another look-up field.
Tax Rate:
The default Tax Rate for this Authority.
If this Authority specifies a graduated sales tax rate by invoice amount, or if the sales tax may not exceed a certain amount per invoice, this field should remain blank, and the Rate tab should be completed instead.
License Number:
The number issued to your firm by this taxing authority.
GL Accnt Id:
The sales tax liability account to be credited. Double-click on this field to select from a list of GL Accounts.
GL Entity Id:
The department or profit center. Double-click on this field to select from a list.
The system incorporates this GL Entity into credit-side tax cost processing when the GL Entity is not set from other sources.
Purchase Order Inventory and General lines:
Uses GL Entity from the PO parent when available, otherwise from Tax Authority.
AP Journal: All child lines
Uses GL Entity from the AP parent when available, otherwise from Tax Authority.
Inventory Adjustment Journal:
Uses GL Entity from the parent when available, otherwise from Tax Authority.
Work Order Inventory / Other Lines
The system now uses the GL Entity from the Tax Authority when not supplied by other defaults (e.g., Company Balance Sheet GL Entity).
Work Order Entry
The system now uses the GL Entity from the Tax Authority when not supplied by other defaults (e.g., Company Balance Sheet GL Entity).
Inventory Receipt Journal
The system uses the GL Entity from the Tax Authority when not supplied by other defaults.
Category
This field is used for reporting purposes. The options for this field are State, County, Local and Other. Click on the radio button adjacent to the option you wish to select.
Use Authority Rules:
If this field is checked, the ‘rules’ and exceptions used to calculate sales tax will come from this Tax Authority, overriding information in the Tax Authority Group.
Tax Labor: Tax Materials: Tax Other: Tax Subcontract:
If the Use Authority Rules box is flagged, these fields define the rules that determine which Cost Categories will be taxed. Note: Exceptions to these rules may be entered by clicking the Exceptions tab.
If the Use Authority Rules box is blanked, the Tax Labor, Material, Other and Subcontract fields will all be blanked, and the taxation rules specified in the applicable Sales Tax Group records will be used instead.
GL Expense Account:
This field specifies the Expense Account for sales taxes paid. If completed, it will be debited in the AP Journal for sales taxes paid. If this field is not completed, the system will continue to use the Sale Tax Authority's GL Account (Liability) to post a debit to the associated account. This will preserve prior installations where 2 authorities would be set up (one for Sales taxes collected and one specific for AP for sales taxes paid). These users could migrate to the new design with little or no impact.
Imported From: Last Updated: Signature Code:
These display fields will be completed if this Sales Tax Authority was imported/updated; currently Avalara imports are supported. The Last Update date specifies when the Avalara file was lasted updated for this Sales Tax Authority. The Signature Code is from the Avalara import file; in most cases, it will be the same as the Sale Tax Authority Id.
Rates Tab
This tab enables you to specify a graduated sales tax rate by invoice amount. You may also use this tab to account for the situation the sales tax may not exceed a certain amount (see Registry Entry Global Settings - Sales Tax Option for another method of accomplishing this). If neither of these situations applies to this Authority, this tab should remain blank, and the Tax Rate field in the Main tab should be completed instead.
Limit:
The upper limit of the invoice amount to be taxed at this Rate.
Rate:
The tax rate percent to be applied up to the limit.
Example: Graduated Rate
Limit Rate
1000 .05
999,999 .03
5% sales tales would be applied to the first $1000 of the sales tax base of the invoice, and 3% on the remainder.
Example: Maximum Sales Tax per Invoice
Limit Rate
500 .05
999,999 .0
5% sales tales would be applied to the first $500 of the sales tax base of the invoice, and 0% on the remainder. This would effectively impose a $25 sales tax limit per invoice for this taxing authority.
Exceptions Tab
Cost Category:
Enter a Cost Category that is an exception to the taxing rules specified in the upper section of this viewer. For example, suppose that most Cost Categories with a Cost Type of Other are taxed by this Tax Authority. However, your Cost Category "Fees and Permits" (with a Cost Category Type of Other) is not taxed. In this case, the Tax Other field in the upper section would be checked, and Fee-Permits entered as the Cost Category Id in the Exceptions tab of the lower section.
Tax Groups Tab
This tab lists the Sales Tax Groups that reference this authority. Double-click on a line to open the Sales Tax Group record.
Id Description Group Rate Cumulative TaxMAT TaxLAB TaxOTH TaxSUB State
These fields default from the Sale Tax Group record.