Standard Sales Tax Setup

Overview Standard tax codes are used when tax rates are determined based on geographic areas, typically using the customer's shipping zip code. The zip code table in the system points to the corresponding tax code for each area. This setup allows for the automatic assignment of tax codes based on the customer's location.

Setup Details

1. Tax Code Field

   • A unique identifier for each tax structure.

2. Over-Ride Type

   • Identifies the tax code as an Override tax code.
     • These can be manually set on the customer record to ignore what is setup in the zip code file.

3. Non-Taxable Fields

   • Checkboxes to mark certain items, like labor, as non-taxable.

4. Total Rate

   • The combined tax rate (e.g., 8.25%).

5. Account # Field

   • Used for Sales Tax Liability.

6. Rental Account #

   • Specific account number override for Sales Tax Liability related to rentals.

7. County Portion Rate

   • Enter the county's portion of the tax rate if applicable.

8. Maximum Amount

   • The limit on the total sales tax for this tax code, regardless of the calculated amount.

9. Description

   • A description that displays when the tax code is selected.

10. County Description

    • Displayed if the county portion is relevant.

Branch and Department Setup

• Branch Setup

  • Specifies if transactions are Tax at Dealer, set in the Tax Setups tab.

• Department Setup - Tax at Dealer Flag

  • Indicates if a department’s transactions should use the dealer's tax code.

Customer Setup

• Customer Setup Window - Tax Codes Tab
  • Defaults to the tax code based on the zip code. 
  • Select an override tax code for exceptions.

Special Features

• Import Tax Code, Lock, Export, and Import: Used specifically for Washington State to manage customer account information and tax codes.

Sale Code Setup

• Each individual sale code can also be marked as taxable or not. The taxable flags are checkboxes below each section. If the checkbox labeled is not checked sales tax will not be calculated on items with the corresponding sale code. These checkboxes on the sale code setup will override what is in the standard sales tax setup. 

Department Miscellaneous Charge Setup

• In Department Setup on the Additional tab, Misc. charges can be setup as taxable. If the taxable checkbox is checked and the misc. charge is added to a document, either automatically or when clicking the "Add Dept Charges" button, the misc charge will be taxable regardless of the sale code or standard tax setup. 
• In Department Setup on the Additional tab, Add'l Labor Hours can be defined. When adding this charge to a work order by clicking the "Add Dept charges" button the taxation will be based on the sale code and standard tax code setup.

Zip Codes 

    Tax rates can be auto assigned by zip code if desired.

• Tax Code Field: Displays the tax code assigned to a specific zip code.
• County List: Shows other zip codes within the same county.