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Set up the Tax
Areas:
On the configuration menu
(from the main menu, press "C") select
"A" Tax Areas to set up your tax area
codes. Selecting this option will display the list of tax
areas that have been set up already.
To view an existing tax
area, press "V" on the highlighted item. To add
a tax area, press "A" to add.
The Tax
Area field should be an abbreviated code that
represents the actual tax area description. Example:
"SD" for San Diego.
The Name
field is the actual name of the tax authority. In most
cases it will be the name of the city or county.
The Tax Rate field
is a calculated field based on the local and state
authorities setup for them. If you won’t be breaking
down the tax into local areas you may enter the rate here.
Set up
the Local and State rates:
Some tax
areas have a breakdown into state and local taxes. If you
want to enter the breakdown here, the sales tax report
will be able to give you the breakdown to the local level.
Select "L" Local
and Area Taxes to set up your local and state rates
for this area code. Selecting this option will display the
list of tax area regions and their percentages.
Some tax
areas have a breakdown into state and local taxes. If you
want to enter the breakdown here, the sales tax report
will be able to give you the breakdown to the local level.
Select "L" Local
and Area Taxes to set up your local and state rates
for this area code. Selecting this option will display the
list of tax area regions and their percentages.
The Locality
or Region field should be an abbreviated code that
represents the actual description. Like "SD"
would mean "San Diego" and "CA" would
mean "California."
The Tax
Rate field here represents the percent amount for this
region. For example the "SD" region could be set
at "0.0175" with the description being
"County". "CA" region could be set to
"0.06" with the description being
"State".
The Description
field is a longer meaning for the actual Locality or
region code.
Note: You will probably
want to set up a resale code "RS" and call it
Resale and/or a "GO" rate for Government. These
would have a tax rate of zero. It’s a good idea to mark
invoices which are nontaxable as "resale", etc.
so that the sales tax report will be complete, with no
missing tax ID codes. It will also be able to produce
sales totals for resale, etc.
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