AR: Sales and Use Tax Setup

Overview

The Sales and Use Tax Setup screen can be accessed from the

The Sales and Use Tax Setup screen is used to assign tax rates for products and services. These rates can then be assigned at the Job level. General Ledger accounts for Sales and Use Tax are also set up on this screen. These rates can then be assigned at the Job level.

All tax calculations are based on the Posting Date of the Invoice.

Each tax code must be assigned to 1 of the 4 Government Types:

  • Government Type 1 - State Tax Codes
  • Government Type 2 - County Tax Codes
  • Government Type 3 - City Tax Codes
  • Government Type 4 - Local Tax Codes

Canadian clients

  • Government Type 1 - GST\HST
  • Government Type 2 - PST
  • Government Type 3 - City
  • Government Type 4 - Local

Security

The AR: Sales and Use Tax Setup screen has its own Security Group, AR Sales and Use Tax Setup.

The AR: Sales and Use Tax Setup screen (not the AR Sales and Use Tax Setup Security Group) is part of the AR ALL Security Group.

This screen has the Read-Only Feature. For more information see Learning about Read-Only Security.

Sales and Use Tax Setup screen

Related Information

Key Functionality

Toolbar

Rollover

When a record is rolled over, the new Description name takes the original Description and appends (1) to the end. It will increment the count (2) as the same record Description is rolled over so a unique description exists.

If the description is very long and the length has reached its maximum limit based on field width, the incrementing functionality will replace the last few characters with the (x). This will allow users to continue to roll over existing Descriptions due to description name being too long to be rolled over.

When rolling over a tax record, the Government Type will be read-only. You cannot rollover one tax code into a different Government Type, with the exception of Government Type ID 4 - Local (and higher).

For more information on see Rollover Functionality.

ID

The ID is automatically assigned by the system for each record and is read-only.

You can right-click on the ID to filter records.

For more information see Filtering and Right-click Functionality.

Lookup

The Lookup field can be used with numbers or names, or both.

If you enter a number and the number matches an existing record ID, the record is displayed.

If you enter a Description and the Description matches an existing record Description, a list displays. You can then select the record you want to use.

For more information see Using Quick Lookups or Lookup Tax Codes.

Active

Use the Active check box to activate or inactive the tax record. The status is active if the check box is selected and inactive when the check box is cleared.

For a new tax record, the system selects Active by default.

Hover over the Change Information icon to see User Added, Date Added, User Changed and Date Changed information. WinTeam records the logon name of the user entering or changing this record. The Date Added is the original date this record was entered into the system. The Date Changed is the date the record was last changed. Right-click on the Change Info icon to filter for records added or changed by a specific user or date.

When you hover over the User Changed or Date Changed filters, you can:

  • Filter By Selection - Filters for all records that match your current records field value.
  • Filter by Exclusion - Excludes from your filter all records that match your current records field value.
  • Filter For - Filters based on the text/value you enter.
  • Sort Ascending - If you already have a filter applied, the Sort Ascending command is available. Also used to include all records in the filter and sort in ascending order based on the current records field value.
  • Sort Descending - If you already have a filter applied, the Sort Descending command is available. Also used to include all records in the filter and sort in descending order based on the current records field value.

Description

Use the Description field to enter a unique name for the record. After you create a new record, the system displays this Description with the corresponding ID number in the list.

The Description field is not a Lookup field.

If you enter a Description that already exists, you will receive this message:
"The Description you entered already exists. Please enter a unique description.

If you want to lookup an existing record, use the Lookup field at the top of the form."

Government Type

Use the Government Type field to group similar type of taxes for sorting and reports.

Type or select the Government Type of tax.

Select from

  • Level 1 - State
  • Level 2 - County
  • Level 3 - City
  • Level 4 - Local

Parent

The Parent tax code is available for all levels except Level 1 - State.

The list includes records that have a level that is above the current tax record.

Example:  EXAMPLE
If this is a County record (Level 2), then the Parent must be at a State level (Level 1).
If this is a City record (Level 3), then the Parent must be either a County or State level (Level 1 or 2).

The Government Types in the list are sorted by Government Type ID's, then by Description.

If you clear the Parent field, the system will automatically clear (uncheck) the Use Parent's Taxability Properties check box.

Use Parent's Taxability Properties

This field is enabled when a Parent Tax Code has been entered.

Select this check box to have this sub tax record use the taxability properties from its Parent Tax Code record.

If this check box is selected the What is taxable section becomes read-only.

General Ledger Accounts

Sales Tax Liability

Enter the General Ledger Number for the Sales Tax account.

Type the G/L Account Number in this field, or use the Quick Lookup to locate a G/L Account Number.

Use Tax Liability

This is reserved for future functionality in WinTeam.

Use Tax Expense

This is reserved for future functionality in WinTeam.

Current

Tax Rate

Enter the applicable Sales Tax Rate for the tax jurisdiction.

You can enter up to 8 decimal places.

Once you change a Tax Rate, and save the record, the original Tax Rate will be stored in the Previous section.

Max Taxable

The amount entered here is the maximum taxable sales amount that will be used for the local Sales tax calculation.

Note:  Note
If there is an amount entered here, the taxes for this tax jurisdiction will only be figured up to the taxable sales amount entered here.

For all cities and counties except an Arkansas locality, this field should be left blank.

For Arkansas, City and County sales tax can only be assessed to sales up to a certain Dollar amount.

As of October 2007 this amount is $2,500.00.

Once you change a Max Taxable amount, and save the record, the original Max Taxable amount will be stored in the Previous section.

Effective Date

Enter the effective date the Tax Rate goes into effect.

Previous

If a change was mad to the tax record, the last saved tax rate and max taxable amount rate displays here.

Notes

Use the Notes field to enter any information related to this tax code. If you enter more than one line of information, the system automatically wraps the lines of information for you. To start a new line or paragraph, press Enter.

What is Taxable?

The section is used to identify items from Inventory and Personnel Scheduling that are taxable.

Items from Inventory include both Products and Services. You can use All or None, and then add exceptions. The default selection is All.

  • You can use the Lookup in the Product grid to select items that are marked as Products. You can multi-select items to add to the grid. Items cannot be duplicated in a grid. Once you select an item, the Description will display.

Note:  If you are using multi-select, and you select a duplicate record in the grid, you will receive an error.

  • You can use the Lookup in the Services grid to select items that are marked as Services. You can multi-select items to add to the grid. Items cannot be duplicated in a grid. Once you select an item, the Description will display.

Note:  If you are using multi-select, and you select a duplicate record in the grid, you will receive an error

Items from Personnel Scheduling include both Hourly Bill Codes and Other Billing Codes. You can use All or None, and then add exceptions.

Once an item has been added to either of the Personnel Scheduling grids, double-clicking in the Description field displays the applicable (Hourly or Other Invoice) Description add/edit list.

Hover over the Change Information icon to see User Added, Date Added, User Changed, and Date Changed information. WinTeam records the logon name of the user entering or changing this record. The Date Added is the original date this record was entered into the system. The Date Changed is the date the record was last changed. Right-click on the Change Info icon for additional options.

For information on grid functionality see Understanding Grids and Using the Filter Row Feature.